Pensioners’ income down 25% on year
by David Masters
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.”
Discuss this in the Finance Markets forums
Story link: Pensioners’ income down 25% on year
Related financial stories to: Pensioners’ income down 25% on year:
- Pensioners re-enter workforce to pay their way
- Pensioners burdened by mortgage debt
- Pensioners slipping below the poverty line
- 1.8 million of UK pensioners living in poverty
- NAO reveals pensions overpaying £250m in tax
Next: CBI says recession has hit rock bottom »
Visited 1084 times, 1 so far today
No Comments »
No comments yet.
RSS feed for comments on this post.
Leave a comment
Tags: Base rate, credit crunch, interest rates, pensioners, savings, state pension, UK
