Hike in over-55s’ income gives a boost to their social lives and saving habits
A 30% increase during the last four years in the typical monthly income of Britain’s over-55s is helping revive their social lives and savings habits, the latest edition of Aviva’s Real Retirement Report shows. The report – which has tracked personal finances among over-55s before, at and during retirement since 2010 – reveals that monthly spending on entertainment, recreation and holidays has grown by 66% from Q1 2011 to Q1 2015 as inflationary pressures on older households’ budgets have eased. The typical over-55 is also saving more than four times as much each month than they were four years ago (£75 vs. £17).
Fear over the rising cost of living, which has consistently been the number one concern when it comes to standard of living, is being challenged by concerns about the risk of serious illness and, to a lesser extent, the need to pay for care. The latter two have emerged over the last four years as the two fastest growing threats to over-55s’ living standards.
Over-55s use income gains to boost social lives and savings
Care concerns on the rise as cost of living pressures ease
Clive Bolton, Managing Director, Retirement Solutions, Aviva UK Life, said:
“Income gains mean that many over-55s can finally afford more room to breathe in their monthly budgets than was possible during the slow climb out of recession. The freedom to spend more on leisure pursuits will feel even sweeter for having had to adjust to an extended period of living under a dark financial cloud.
“Things are certainly looking up in the short-term, but it is important not to forget the bigger picture too. It is hugely encouraging that people are using some of their extra income to step up their efforts to save, as well as adding enjoyment to their lives.
“It is very easy for people to underestimate how long retirement pots needs to last, and it takes a careful balancing act to plan for the future as well as enjoying the here-and-now. Care costs are often the great unknown, but making efforts to grow their savings pots will leave people in a better position to cope if this need arises.”
Full press release on www.aviva.co.uk
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