Financial security in later life is becoming increasingly uncertain with more than a third (35%) of the UK, over the age of 55-years-old, starting to live beyond their means.
A quarter of respondents believe the heightened cost of living is forcing them into debt, according to recent research from equity release provider, more2life.
68% of respondents will use their savings to fund their lifestyles whilst 17% will slip into debt by utilising their overdraft facility or pay for products using their credit cards (16%).
Almost half of those surveyed (48%) were anxious about their financial future, worried that increased spending on everyday essentials is forcing them to use their savings and means they would be unable to cover an unexpected expense costing more than £5,000.
Furthermore, over a tenth (14%) believe that they would need to take out a loan to pay for an expense exceeding £5,000.
The use of equity release was therefore viewed as a viable option to support old age and supplement rising costs.
Dave Harris, CEO at more2life, comments:
“Fewer over-55s are enjoying a financially carefree retirement, a fact that we can in part attribute to smaller pension pots, greater financial responsibilities and longer retirements.
“While it is natural to want to use your savings to improve your standard of living in later life, being forced to dip into them or borrow to meet day to day living costs is another matter entirely.
“This research highlights that for some people retirement is far from relaxing and they are one large bill away from real financial hardship.”
Will this trend make it more difficult for executors to ascertain all liabilities and assets in the future?
