Keeping a roof above your head
There is considerable concern for those over 50 about being able to afford mortgage repayments or rents. Most of the fear is fired by the likelihood or fear of redundancies. Older employees feel they are more vulnerable than their younger colleagues. They also have more problems finding re-employment.
AGE UK surveyed almost 1,000 people in the 50 – 55 age group and 23% said this was their greatest fear. This is a real sign that times are tough. A spokesperson for AGE UK said ‘This is the time when people should be at the peak of their financial security but it doesn’t seem to be the case. They seem beset with financial worries.’
For those who have retired early they are facing other problems. Returns on savings are not good and haven’t been for some time. And annuity rates on private pensions are at an ‘all time low’. The annuity or annual income on a pension pot of £100,000 has gone down by more than £400 a year.
Apparently if you are turned 60 things aren’t so bad. A report by the IFS (Institute of Fiscal Studies) found that pensioners had seen their incomes increase since 2008. They argue that pensioners had seen the largest rises in income compared to any other age group. What do you think?
The UK’s BIG Money Test
Meanwhile the BBC conducted a massive survey to see how people manage and make decisions about how they use money. An incredible 109,500 people took part and it seems from the results it is not enough to understand how to manage money. There are many other factors, many of them psychological.
It would seem that emotions play a big part in how we handle money. ‘Good financial capability is linked to higher levels of income and education, while money motivations are not.’
Spending money on impulse is more likely to get people into trouble than those who don’t spend money this way. Impulsive shoppers are also three times more likely to go bankrupt. Women and those under 21 are most likely to spend in this way.
The study found that people who are motivated to spend in this way do so to ‘manage their emotions’. This technique is often used to make them feel happy or less sad.
The battle of the sexes and money
The biggest difference between men and women and their money is that in general women are more generous! Men often feel that money offers them a sense of freedom and women use it more to manage their emotions.
Meanwhile
· More than 40% said they worried all the time about spending money
· About 50% were bargain hunters not happy to pay the full price for anything
· Over a third had anxiety problems when treating themselves
· And a third said they thought about money all the time
What about the retired?
For the much older person their costs for staying in their own home as they age will be considerably cheaper if they age in place, (that is at home,) rather than seeking a room in a residential home. The cost of residential care in the UK is over £500 a week, and according to the BBC over £700 a week for nursing care. For the price of three weeks care you could get a brand new, warranted and guaranteed stairlift to enable you to live longer in your own home. Get a free quote today by calling 0800 007 5050.