Aviva reports income drop for over-55s
In its latest Real Retirement Report, insurance company Aviva suggests that people over the age of 55 are ‘significantly poorer’ now than they were a year ago.
The average income of people over 55 has fallen 4 per cent over the last year, and high-levels of inflation mean that in real terms their income has fallen even further.
The over-55s have been dipping into their savings in order to offset the rising cost of living, with savings falling by 27 per cent from £15,262 in December 2010 to £11,153 today.
Despite drawing on savings, the research showed that the level of debt incurred by over-55s has increased, with an average person in this age group now having unsecured debts of £21,900 compared with £19,878 a year ago.
Surprisingly, given the above figures, the number of non-savers in this age group has fallen from 41 per cent a year ago, to 36 per cent, and they are paying off their mortgage faster.
However a fifth of people over the retirement age are still working because they are unable to afford to retire, which isn’t surprising given that Aviva found that the typical person fails to make any provision for retirement until they reach the age of 52.
Aviva interviewed 12,000 people for its Real Retirement Report.
In related news, pensions company MGM Advantage has revealed that pensioners contribute £2,000 a year each to the economy in unpaid work such as childcare, voluntary and charity work.
In total, they contribute £25 billion a year to the economy and yet a third reported feeling unappreciated and badly treated by society.
MGM’s report calls for the Government to appoint a Minister for Retirement to represent the views of pensioners.