A Quarter Of Over 55ers Live On Less Than £24 A Day, Says Aviva

Insurance giant, Aviva, revealed yesterday that a quarter of those living over the age of 55 survive on an income of less than £24 (US$38) a day. 

In one of the largest and most important surveys of over-55s in Britain, Aviva paints a gloomy picture for the aging generation forced to spend less on food as they struggle to meet their daily needs on a paltry and simple income, with little or no savings, no pension, and huge debts yet unpaid.

Insurance giant, Aviva, revealed yesterday that a quarter of those living over the age of 55 survive on an income of less than £24 (US$38) a day. 

In one of the largest and most important surveys of over-55s in Britain, Aviva paints a gloomy picture for the aging generation forced to spend less on food as they struggle to meet their daily needs on a paltry and simple income, with little or no savings, no pension, and huge debts yet unpaid.

At the same time, 7 percent of those over 75 years old are still trying to finance a re-mortgage of an average “worrying” size of £46,873 (US$73,712), said Aviva.

According to a report from the Daily Mail, experts warn that “millions in this age group are facing an unhappy and impoverished old age.” In the study involving more than 10,300 British over-55s, 23 percent of the respondents reported a post-tax monthly income of £750 (US$1,179), or £24 (US$38) a day.

Aviva, who conducts the survey once every three months, says it has found conclusive evidence that older people are “cutting discretionary food spending and opting for cheaper options”.” This includes going to discount shops or cheaper supermarkets, and avoiding expenditure on costlier items such as organic food. 

Clive Bolton, a director of Aviva, said that the situation is made worse by rising inflation, which cripples pensioners more than any other age group. 

The Aviva report shows the average monthly income for this age bracket has seen their income fall by almost £80 (US$126), over the last three months since the last report, to £1,216 (US$1,912) due to spiraling inflation. 

[quote]”There appears to be a hard-core set of people who are either unable or unwilling to save who need to be educated and encouraged further,” Bolton said. [/quote]

The challenges faced by older people have also been made worse by the Bank of England’s decision to cut the interest base rate to its record lows, with savings accounts earning almost zero percent in interest. 

“No matter how bad the climate is for savings, people need to get into the savings habit. Unless you save for a large part of your working life, you are going to face an unhappy and impoverished old age,” said Simon Rose, advocate from the ‘Save Our Savers’ group, to the Daily Mail.