You are here: Home - Uncategorized -

Pensioners on the breadline

0
Written by:
21/06/2006

A staggering 1.4 million pensioners – 14% of the pensioner population – live on an income of £5,000 or less each year, according to Prudential. After council tax, water and electricity bills, this leaves only £3,092 per annum – which is equivalent to £59.46 each week or £8.49 a day.

Today the annual income of someone entitled to a full basic state pension at age 65 is less than £5,000 at just £4,381 a year. This highlights the need for today’s workers to save for their future rather than assume they will be able to live comfortably on the state pension alone.

More than 38 per cent (3.6 million people) get by on £10,000 or less, and over half of the British pensioner population live on £15,000 or less each year.

This level of income has forced many pensioners to make cutbacks in their everyday spending – 59 per cent said they had done so in the last six months.

Prudential UK director, Angus Maciver, said: “It’s worrying to think that such a large number of pensioners in this country live on £5,000 or less a year. How many of us could truly say that we could manage on what works out to be just £8.49 a day? What’s more, this struggle isn’t just for a couple of years. Retirement is now roughly 25 years long for the average person, but who wants to spend what’s nearly a third of their life struggling by on less than a ‘tenner’ a day?”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
England bottom of Euro financial league

When it comes to our personal finances we are bottom of the Euro league compared to four key World Cup...

Close