Over-55s see income and savings leap
The over-55s are defying the UK’s lacklustre economy. They have seen their income jump by 21 per cent and their total savings rise by more than £10,000 since the depth of the recession, according to Aviva’s Real Retirement research.
The quarterly consumer tracker shows a marked difference in the lives of the over-55s in the third quarter of 2014, compared to the third quarter of 2011. Over-55s’ household income has seen a significant rise and typically stands at £1,317 per month, up 21 per cent from £1,091 in 2011.
Monthly savings has more than doubled between 2011 and 2014, with today’s over-55s now typically put away £50 a month, compared to just £24 in the same period in 2011. As a result, their typical total savings and investments have increased by more than £10,000 from £7,969 in the third quarter of 2011 to £18,240 in the third quarter of 2014.
Despite the improving financial situation of many over-55s, spending is not markedly different over the period, £754 per month in 2014 compared to £725 in 2011.
The largest proportion of monthly spend consistently goes on the staples of food, fuel, and housing. Spending on luxuries, such as on entertainment, recreation and holidays, has increased by a quarter (23 per cent) between 2011 and 2014 as people start to use their disposable income. Monthly debt repayments have also declined over time by 26 per cent, from £42 a month in 2011 to £31 in 2014.