Pensions? No problem
The over-55s are confident they can afford luxuries
Wednesday, 04, Jul 2007 11:28
Contrary to the view that pensioners struggle to make ends meet many of those aged over 55 are actually "sitting pretty", new research has suggested.
One in ten of those who fall within the older age bracket are satisfied that they can afford to indulge in luxuries, according to a poll conducted on behalf of Birmingham Midshires.
In contrast just one in 50 of those aged between 18 and 24 believe that they can do so, the YouGov survey of 2,214 people found.
Over-55s also feel that they can afford the luxury of spending more quality time with loved ones, with one in three (39 per cent) content with the amount of such time they have available compared to just nine per cent of those aged between 25 and 34.
But despite the overall optimism found among the older age group, the research highlighted an "alarming" lack of financial confidence demonstrated by respondents who only had a state pension for their retirement.
Just 15 per cent of those whose main income for later life will be provided by the state said they were confident they could afford basic everyday necessities.
That compared to a confidence rating of 55 per cent among those who had both a state and personal pension.
Birmingham Midshires said the finding was of concern given the estimated 20 million people in Britain not currently accruing a retirement income in a private pension and warned that government provision was not keeping up with rising inflation.
Commenting on the results of the survey, Jason Robinson, director of savings operations for Birmingham Midshires, said: "It's great news that many people can look forward to financial and social freedom in later life - but, of course, the more money they have coming in from pensions and savings the more enjoyable retirement will be."