Pensioners Counting The Pennies

Published / Last Updated on 29/11/2007

Norwich Union

Research conducted by Norwich Union has found that many pensioners are living on less than £10,000 per year and that they are worried about their finances.  Some pensioners have reduced the length of time that they have their heating on, while others have reduced the amount that they spend on food in a bid to control the rising cost of living expenses.  

Other areas that are causing the retired concern are the costs of long-term care, being unable to leave an inheritance or having to rely on family for support.  However, some pensioners could be sitting in their own little post of gold, their home.  While equity release is not the right option for everyone, it is something that could be taken into consideration when taking retirement.  Age Concern feel that the state pension should be increased to £119 per week to enable pensioners to have a better quality of life.  

Our view

That is all very nice for Age Concern to state a figure that is £30pm more than what people receive currently.  The question is would the public stand a 30% rise in taxes to pay for it? We suggest not.  The key to a successful retirement income is:

  • Save regularly at around 10-20% of income
  • Review it regularly
  • Take professional advice each year on investment funds and strategy
  • Take professional advice at retirement to ensure you get the highest annuity income

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