Retirees struggling for cash, finds Skipton

Published by Daniel Jones

A huge number of older people in the UK are being forced to live on a small amount of money, despite having worked for up to 50 years of their life.

New research by Skipton Financial Services has discovered the average retiree banks less than £16,000 a year. It means those who are entering what should be the golden years of their life are actually having to worry about making ends meet.

On average, a retired person in the UK brings home £15,776.27 a year, which puts them some way behind even those who have just left university and are starting their first job.

Andrew Barker, managing director at Skipton Financial Services, said: "It is extremely worrying that so many people are facing such a struggle in retirement, at a time when they would have hoped to be able to enjoy themselves and do some of the things they were unable to do whilst working."

One in every six people is said to rely entirely on their state pension in order to get by, with this worth a maximum of £145.40 a week. This amount can only be banked if the basic weekly pension of £110.15 is topped up by guarantee credit.

Such findings might give Britons in their working years at the moment the determination to make something more of themselves, so that they are not struggling in their 60s, 70s and 80s.

A particularly good idea is to invest in property that can be rented out, providing an additional source of income for many years. Once the mortgage has been paid off, people will be able to top up their pension pots with rental income from their accommodation.

Struggling in later life is not something that anyone wants for themselves and their family, so taking action to prevent this is a must. With the UK rental sector booming, being in a position to offer homes to let is a strong and reliable financial plan.ADNFCR-1645-ID-801633093-ADNFCR

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Published on: September 3, 2013

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