Older generation struggling to pay for necessities

A new report has highlighted that older people are facing more financial pressures as a result of the decline in traditional pensions.

Research – from Andrea Finney of PFRC at the University of Bristol – lists high fixed household costs and dependent children as just two of the many factors that are causing more pensioners to borrow cash just to get by.

Ms Finney said a decline in benefit pensions has been made worse by the fact that pay rises continue to be outstripped by inflation, meaning older workers have got even less to fall back on once they reach the age of retirement.

According to express.co.uk, additional factors such as rising energy prices are causing older Brits to borrow money in order to pay for essentials. 

The International Longevity Centre (ILC-UK) said that before they seek external finance to help them pay for their upkeep, older people should to take to writing down all their monthly outgoings and match them against their future income. That way, they might see where they need to cut back in preparation for a slightly less extravagant lifestyle.

David Sinclair, assistant director, policy and communications at ILC-UK, told maturetimes.co.uk: “Having high fixed household costs drives credit use as does having low income.

“There are particular pressures on older people still in work, who may also have children to provide for. With pay rises to be outstripped by inflation, government must ensure that 'work pays'.”