Pensioners sitting pretty

Challenging the stereotype of poverty-stricken pensioners sitting at home alone, or facing equity release to fund their old age, many of today’s over 55s are living life to the full and are more likely than their younger counterparts to be able to afford luxuries and enjoy a good social life.

New research from Birmingham Midshires’ ‘Life 2’ campaign, which explores the issues affecting the lifestyle of the over 55s, reveals that one in ten people from the older generation are totally satisfied that they are able to indulge themselves with luxuries, compared to one in fifty 18 – 24 year olds. Meanwhile, almost one in five (19%) can afford the social life they want.

However, happiness is not only measured in money. Those over the age of 55 also have the luxury of time and more than one in three (39%) are completely happy with the amount of quality time they are able to spend with their nearest and dearest while 36% have plenty of time to enjoy themselves, compared to just 9 per cent of harassed 25 – 34 year olds.

When it comes to career satisfaction, one in four people reaching retirement age are content with what they achieved during their working lives. Perhaps surprisingly, those at the beginning of their career path, those aged 18 – 24, are more likely to be happy with their achievements than those in their mid 20s to mid 40s.

Whilst the future is bright for people with both a state and private pension, there is a significant gulf between those with more than once source of income and those reliant solely on Government payments. While 55 per cent of those with state and personal pensions are confident they can afford the basics of everyday life - the highest of any working group including the full-time employed - this figure drops to a startling 15 per cent for those with only a state pension. Alarming when, according to the Pensions Policy Institute, 20 million people are not currently accruing rights in a private pension. With inflation standing at 2.8 per cent, Government pensions are simply not keeping pace with the cost of living.

Jason Robinson, director of savings operations for Birmingham Midshires said: “The over 55s are facing enormous change in their lives and many may be apprehensive about their retirement. Our ‘Life 2’ campaign aims to understand the financial situation and attitudes of this age group. It’s great news that many people can look forward to financial and social freedom in later life – but, of course, the more money they have coming in from pensions and savings the more enjoyable retirement will be.”