9th January 2014
Almost four and half million UK retirees have dramatically cut back their spending over the past year to cover the cost of living writes Philip Scott.
According to research from retirement income specialist, MGM Advantage, an estimated 41% of retirees – a massive 4,480,000 people – have reduced their outgoings in a bid to make ends meets.
This includes some 2,940,000 retirees, who have cut back on household fuel bills, while 23% or 2,500,000 million individuals have reduced food shopping.
When it comes to retirees managing the rising cost of living, around 3,630,000 pensioners, at 33%, have changed shopping habits by using discount stores or are travelling less frequently.
Another 14% have delayed replacing their car, while 15% are using public transport more often or walking. In addition, 13% – an estimated 1,420,000 people – have sold things on internet auction sites such as eBay, to generate some cash.
Andrew Tully, pensions technical director, MGM Advantage says: “We are in the midst of a cost of living crisis and this shows no sign of going away. Times are tough, but retirees are resilient people who have even turned their hand to internet auction sites to generate some cash. But these figures highlight the perilous state many find themselves in, cutting back on essentials like food and heating to make ends meet.
“Retirees find it particularly tough as they face the double whammy of a typically fixed pension income and currently low returns on their savings. They also spend a disproportionate amount of that income on the essentials to live compared to other groups.”