UK pensioners "scrimping to survive"

22/10/2007

New research shows that the majority of over 60s are scrimping on food, clothes and heating to survive on under £10,000 a year.

 

The study, carried out by Norwich Union, revealed that almost a third (32%) had taken cost cutting measures: 11% had stopped taking holidays, reduced their spending on clothes, toiletries and footwear, and a further 11% had cut down on socialising. In addition, 9% have cut back on the amount of time they keep their heating on, 6% have reduced their spending on food and a further 5% have stopped using a car.

Despite having to make these cutbacks, only 29% of the over 60s questioned are claiming benefits to help them through retirement, with 70% believing that they are not eligible.

But it doesn't stop there - the over 60s also expressed a range of other money worries. The increasing costs of household bills are of major concern to almost one in five (19%), and 16% fret about how they would afford long-term care should the need arise. 11% are anxious that they may not have enough money to live comfortably in their retirement and a further 11% are concerned they will not be able to cope with the rising cost of living. Being unable to leave an inheritance is a worry for 6%, while 5% are apprehensive about having to rely on their family for support.

Dominic Fraser-Smith, Group Product Manager at Norwich Union said: “This research paints a worrying picture for those over 60. Their golden years should be spent enjoying the fruits of their labour rather than worrying about their finances. "

Those struggling the most are in the North East, then London, the South West and the West Midlands. Those scrimping the least are in Scotland, closely followed by Yorkshire and the Humberside.