Cost of life increases leave Brits in retirement worse-off
Brits that are retired or about to retire face tough times. Recent increases in living costs are forcing many of them to cut down on their expenses and forget their dreams of living their retirement to the full. Find out more about ways to beat inflation and budget your household finances.
Despite 58% of people stating that having financial security is their top priority when retiring, the current financial situation is making that goal very difficult to achieve; a new study from the retirement income specialist MGM Advantage shows.
Financial struggles have forced almost four million retired Brits (37%) to scale back on their daily expenditure. Another 2,734,000 have decided to take less holidays and 1,509,000 have chosen to downsize their main property.
Other money-saving decisions include relying upon credit (725,000), giving up expensive hobbies (503,000), releasing equity from property (477,000) and requesting financial assistance from relatives (265,000).
In addition, 583,000 retirees have sought a new income by returning to work or starting a new career during their retirement time.
Financial concerns also led 265,000 retirees to request financial assistance; 486,000 to rely on credit in 2010 and 119,000 retirees to approach their relatives seeking for help.
Furthermore, it was also published recently that quality of life is falling for those aged over 50, making them less happy and satisfied with their lives.
According to the report, this is mainly because older people are suffering from higher levels of inflation than the rest of the population and also because high levels of unemployment are also hitting people in this age bracket particularly hard.
If you don’t want to struggle financially when you retire, knowing and comparing different financial products - such as bank accounts, credit cards or prepaid cards- can offer you help for budgeting and managing your finances more successfully. The more information you gather the best retirement deals you will obtain.