With essential costs such as gas and electricity increasing by over 40 per cent already this year, pensioners' disposable income is shrinking fast - potentially forcing many to live on the breadline. As a result, concerns about their ability to pay for day-to-day living is becoming a real worry for retirees, with nearly half (46%) concerned about their depleting income.
Nigel Barlow, Head of Retirement Solutions at Just Retirement said: "Reaching retirement shouldn't be a cause for concern; retirees should be looking forward to the prospect of easing off the pressures of working life. Yet an increasing number of potential retirees - one in four - are unable to rid themselves of their debts, potentially taking them with them forever.
"In response to the escalating financial hardship one in eight (12%) of those approaching retirement age are planning to continue working in order to bolster their income. However, with unemployment figures estimated to reach 2 million by December, it is possible that pensioners will find it harder than ever to find work. With no obvious solutions being proposed to help those struggling at retirement, the likelihood that poverty amongst pensioners is set to spiral out of control.
"It is key for pensioners to be aware of what resources are available to help stretch their income in retirement. Retirees can bolster their income by getting the most out of their pension fund by shopping around for the most attractive annuity rate which provides an income throughout retirement. Many people don't realise they may be eligible for an enhanced annuity if they have a health impairment or smoke which could significantly increase their income. Additionally, those who own their own home may be able to generate funds or income from it.
"The current economic climate highlights the importance of making the most of your finances, so if in doubt - it is important to seek advice as failing to do so could be an expensive mistake. As a first step Age Concern² can provide guidance and information on winter fuel allowances and other social entitlements".
