Over-55s 'worried rising living costs will impact on pensions'

Posted by Sarah Glenister

People over the age of 55 are most concerned over the rising cost of living and how it will impact on the money they have saved in pensions, one organisation has said.

Clive Bolton, 'at retirement' director for Aviva, stated the amount people spend on everyday items can be troubling to older generations as a nest egg of £16,296 equates to a gross yearly income of only £117 from a typical branch-based notice account.

The company's latest Real Retirement Report found 64 per cent of people over the age of 55 said they were worried about increases in living costs, compared with 18 per cent in May.

Additionally, a fifth of households in this demographic are earning nearly a third of the national average income.

"Retirement income is also relatively fixed which is why any rise in the cost of living is particularly concerning for this age group," Mr Bolton explained.

This combined with another finding of the study - that many are unprepared for unexpected expenses - makes it "vitally important" people save for their retirement over the full course of their life, he added.

This comes after Dr Ros Altmann wrote in the Yorkshire Post that basic state pensions were inadequate, calling on the government to increase payments to the elderly.