Over 50s Shown To Be Struggling With Spending
Although the continued impact of the credit crunch is being felt by consumers of all ages, the personal finance pinch is more acute for particular groups than it is others, a new study shows.
In research carried out by the Post Office, it was reported that those over the age of 50 are being hit the hardest by the downturn in the wider economic markets. According to the financial services provider, recent rises in the cost of living are seeing just under half (47 per cent) of Britons within this age demographic are regularly making use of a credit card in order to meet the cost of day-to-day purchases. In particular it was indicated that older people might be struggling the most with the credit crunch, with just under two-thirds (64 per cent) of over-70s indicated as using plastic cards in order to pay for groceries.
And in being forced to turn to credit cards in order to meet day-to-day costs such as groceries, it may be possible that consumers are struggling with other areas of financial constraint which might include areas such as loans, household bills and mortgage payments.
Meanwhile, the company indicated that the decline in the monetary markets is also impacting upon people’s capacity to put money away for the future. At present the firm stated that 48 per cent of the over-50s claim the rising cost of living means they do not have any disposable income, with 57 per cent reporting they cannot afford to save money.
Furthermore, it was stated that these consumers could see monetary pressures becoming evermore intense in the months to come as the financial services firm pointed to reports that inflation could be set to surpass the four per cent barrier. And with concerns also noted in regards to the amount of money being put into savings accounts, the firm warned that either under or overpaying on a life insurance policy might make a “significant difference” to a consumer’s monthly outgoings.
Commenting on the figures, Duncan Caesar-Gordon, head of protection for the Post Office, said: “In an economic climate where living costs are soaring, over-50s are finding they cannot afford to save and are more reliant on credit. Thinking about the future and how the family will cope should the unexpected happen is an extra worry but a simple life plan can offer peace of mind to those concerned about passing on funeral costs and debts.”
During the current period of financial decline, for people concerned about how they are to manage their money - whether this relates to making payments into a life insurance scheme or paying for groceries - taking out a low-cost loan might be advisable. In doing so borrowers could find that they can meet their monetary goals and be left with an affordable rate of repayment to make each month. Getting a loan could also be recommended for people finding they are struggling with money after a recent study by Scottish Widows revealed that 17 per cent of women identify with East Enders’ character Honey Mitchell and state that they always find themselves “short of money“.
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