Living costs pushing retirees to the edge

More than one in two retirees, 54%, are struggling to make ends meet as the cost of living escalates, according to new research from Engage Mutual.

At a time when everyday expenses such as food and heating and continue to soar, many retirees are facing the fact they simply can not afford their everyday expenses. Around one in two, 49% of those retirees struggling to pay costs have been forced to make cutbacks in order to afford their expenses, with 17% resorting to simply going without.

At a time when financial circumstances are putting family relationships under strain, Engage Mutual Assurance questioned a GB representative sample of retirees on finances during retirement as part of its 3GB campaign.

Where their own finances simply will not stretch, retirees look for alternative ways to pay, one in ten struggling with costs, 10%, have put themselves further into debt by paying for bills on credit, despite 13% already battling to pay off their credit card debt.

With previous research showing that 5% of adults already financially support their parents, an added 4% of retirees feeling the pinch are now turning to their children or other relatives for help as a result of the credit crunch.

Reflecting rising fuel costs, 33% of retirees are struggling to pay heating bills, and 30% can not afford the costs of running a car.

In order to cover the cost of keeping warm, 64% of people struggling to make their pensions stretch have reduced their spending elsewhere and 61% have had to raid their savings.

Worryingly, 21% are struggling to afford dentistry and medical appointments in old age.
In attempts to keep their heads above water, 36% of retirees struggling to pay bills have been forced to raid their savings in order to pay everyday expenses. 16% of them are currently saving in order to continue to be able to afford their expenses.

Retirees will not be experiencing any of life's luxuries either as 19% can not afford to pay for treats for themselves and 13% will not be able to pay to treat their grandchildren.

Those living in the Midlands are struggling the most to pay their bills in practically every category compared to the rest of the country - a huge 60% of retirees living in the area say they struggle to afford their bills. Two in five, 40%, are finding it difficult to pay their heating bills, 35% battle to run their car and 27% have difficulty paying dentistry and medical bills.

Karl Elliott, 3GB spokesperson for Engage Mutual Assurance said: "With the increased costs of food, fuel and mortgages taking effect, our research shows that those in retirement are becoming increasingly worried about being able to afford their everyday spending. We would always encourage those with money worries to seek financial advice in the first instance. We know that saving little and often today often helps families to prepare for those unexpected financial eventualities. By making the most of tax efficient savings opportunities such as ISAs and Child Trust Funds it is possible for families to build up a nest egg, should elderly parents become increasingly dependent on them or for when their children need some financial support to get them started in adult life."