Britain’s over-55s are cashing in on the improving economy with rising incomes leading to more than £150 extra in their pockets a month compared to the same time last year.
At least that’s what Aviva’s latest Real Retirement Report shows.
More income
The research revealed growing income among over-55s with the age-group now typically receiving £1,373 a month in income – an extra £151 a month compared to the same time last year (Q1 2013).
They are pocketing £216 more compared to two years ago (Q1 2012) when their overall income was £1,157, and £258 more compared to Q1 2011.
From where?
Savings and investments are partly behind the boost with both now providing income for a larger number of over-55s.
Nearly a third (29%) named this as a source of income compared with 24% at the same time last year (Q1 2013) and 25% for the previous years (Q1 2012 and 2011).
More saving
Savings levels have also vastly improved as over-55s seek financial stability.
More savers are now putting away more money to protect themselves against the rising cost of living and the fear of having enough money in retirement.
The amount of money put away in savings and investments reached a high of £18,632 in Q1 2014 – last reaching near these levels in Q3 2012 when they stood at £17,750.
Less debt
The report also revealed that over-55s are now less reliant on borrowing.
The level of unsecured debt owed by the over-55s has fallen across credit cards, loans and overdrafts in 2014.
Credit card balances have been fluctuating over the years, yet have now fallen to an average of £777 – which has been reducing over time.
Make your money go further
Saving more and having less debt is a great start.
However to really make your money go further you need to clamp down on investment costs and be as tax efficient as possible.
This is where good, independent financial advice really comes into its own.
Are you saving more and reducing debt? Does this Aviva survey ring true?
Leave your comments below.
If you’d like to discuss what we can do to help your money go further ring us on 020 7993 4898 or email us at advice@www.townclosefp.co.uk.
Sources: aviva.co.uk