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Almost quarter of over-55s think there is nothing they can do to increase income – Key Later Life

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  • 10/11/2022
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Almost quarter of over-55s think there is nothing they can do to increase income – Key Later Life
Nearly a quarter, 24 per cent, of over-55s think there is nothing they could do increase their income and are opting to turn off heating and lights as their first port of call.

According to Key Later Life, which surveyed around 1,000 people aged over 55, retirees are also more likely to believe that there was nothing they could do to increase their income at 28 per cent.

Those working full-time and part-time were less likely to think there was nothing to be done to increase income at 18 and 20 per cent apiece.

In all over-55s, 58 per cent said that they would put heating on less and switch off lights if not in use respectively.

Around 29 per cent said they would review direct debits and cancel non-essential ones, whilst 18 per cent said they would consider moving savings into better performing accounts and review benefits respectively.

Those working part-time were more likely to put heating on less at 63 per cent, and 61 per cent said they switched off lights if not in use.

Retirees are also slightly more likely to cut back on heating and switch off lights at 60 per cent apiece.

Overall, for over-55s, 45 per cent said they would go out less and 38 per cent said they would buy cheaper brands.

Will Hale, CEO at Key Later Life Finance, said that most people in the UK were “fully aware” of the impact of the cost-of-living crisis and were cutting back where possible.

He said that over-55s were no different but regarding the expenditure going on food and utilities, they were “particularly vulnerable to the price increases we’ve seen”.

Inflation rising from 3.1 per cent in September last year to 10.1 per cent in September this year, even with 39 per cent of those saying they already factored this into their retirement, means more could be feeling their pressure.

He said it was “not entirely surprising” that 21 per cent of over-55s said they either don’t know how they will or won’t manage financially with inflationary increases.

Hale continued: “While building up a pension nest egg over your career is arguably the best approach, this is not a possibility for everyone, so they really need to consider all their options including housing equity.

“With over-65s currently sitting on £2.95trn worth of unmortgaged equity there is no doubt that property can play a role to help older people to maintain their standard of living in these challenging times or indeed to assist younger family members who are likely also to be feeling the pinch.”

He added: “The best way to start is to speak to a specialist financial adviser who has in-depth knowledge of the market and the different products available as well as other options that might be considered.

“Some may find downsizing works while others may want the flexibilities and protections offered by equity release or find that they are entitled to claim benefits they were not aware of – it is about finding the right option for their individual circumstances taking into account both immediate needs and long-term implications.”

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