Pensioners’ income down 25% on year

| April 20, 2009 | 0 Comments
Pensioners' income down 25% on year

Pensioners have seen their monthly income slashed by almost a quarter in the last year, research by SHIP has discovered.

SHIP (Safe Home Income Plans) revealed that the 8 million British pensioners are suffering from the drop in income, caused by the collapse in the Bank of England’s base rate.

Income from savings has plummeted 90% compared to 12 months ago as the Bank of England’s base rate has been cut from above 5% to just 0.5%.

The average interest paid on pensioners’ savings has dropped to £16 per month, or 4% of their income, compared to £158 per month, or 29% of their income, in April 2008.

Andrea Rozario, SHIP director general, said: “Many pensioners have saved their whole lives with the expectation that they can use income from this capital and the state pension to fund a comfortable retirement.

“However, with the unprecedented movements of the UK base rate, thousands of pensioners are now contemplating how they will survive without up to a third of their income.”

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