Cost of Living Squeeze Hits Over 60s
Cost of living pressures are forcing nearly one in three people aged over 60 to make major sacrifices to their, lifestyles including turning down the heating and eating less, our research shows.
Our recent independent study found 29% of over 60s admit to cutbacks in spending and measures such as borrowing from family and friends and selling possessions because they do not have enough money to live off.
Around 12% say they cannot afford to heat their homes when they need to, while up to 10% are eating less to have enough money to get by. Around 15% say they have sold possessions as they do not have enough money to live on.
The research underlines the growing financial pressures on people in the run up to retirement and highlights the struggle for millions despite the rise in average pensioner incomes.
Government figures show average pensioner household incomes after tax and housing costs are around £297 a week and that pensioner household incomes have increased by around 19% over the past decade.
But our study showed around 600,000 over sixties (the equivalent of 7%) have less than £50 a week in spare cash while millions of others have to make major sacrifices.
We could help
Through our Home for Life Plan, which enables over sixties to secure homes with savings of up to 59%*, we're aiming to revolutionise the way people approach retirement, helping them to avoid being stuck in unsuitable, unaffordable housing with unmanageable repayments and, instead, allow them to retire happy!
Mark Neal, Managing Director at Homewise, said: “The rise in average pensioner incomes is very welcome but it does not tell the whole story and the sacrifices that many have to make in order to get by.
Far too many people in retirement are stuck in debt, living in unsuitable housing and having to scrimp and save.
We believe that the Home for Life Plan can help by enabling over 60s to move to a new home under a lifetime lease and release money to not only clear any debts but also allow those in retirement to live happily.”
The Home for Life Plan is a lifetime lease where those aged 60 or above can select a property to live in which is then purchased by Homewise at the full price. Customers will then secure a lifetime lease from Homewise typically at a savings rate of around 33%.
Legally, they are the lifetime lease owner of the property and can do as they wish – paint, wallpaper or put in a new kitchen. When the plan ends and that person passes away or goes in to permanent care, the property will revert to Homewise but he or she can choose to leave an inheritance of up to 50% of the future of value of the home.
To find out how Homewise could help you, simply get in touch with our friendly Customer Service team. They’ll be able to explain exactly how the Home for Life Plan works and tailor a quote to your situation.
You can also use our online Budget Booster, which will give an estimate of how much you could save on your home for life. It's quick, easy and shouldn't take longer than 3 minutes!
*Savings range from 8.5% to 59% and depend on the customer’s age, personal circumstances and property criteria. Only available to those over sixty years old.