More than half of over-55s cut back on heating and lighting to save money
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More than half of people over 55 will cut back on heating and lighting to save money if inflation bites, while nearly a third will use less energy when cooking
- Data from the stock company Key shows how over-55s are saving money
- Inflation returned to double digits in September, reaching 10.1%
- Only 14% of people over 55 say they don’t plan to make any lifestyle changes
- Those who work part-time are the most frugal of the age group
More than half of people over 55 plan to cut back on heating and electricity use to try to reduce the impact of inflation on their cost of living, new data shows.
Inflation reached 10.1 percent in September, up sharply from 3.1 percent around the same time last year, and is likely to have a greater impact on over-55s who spend more of their budget on food and utilities compared to other age groups.
Only 14 percent of the group say they have no intention of doing anything to let their money go further, according to research by the equity release provider Key.
Over-55s are cutting their heating and lighting to try to beat inflation
Check out our inflation calculator which uses official UK inflation data to show how prices have changed and what money used to be worth.
Within the age group, those who work part-time are the most economical: nearly two-thirds (62 percent) say they plan to use less heating and 61 percent say they turn off the lights when not in use.
In addition, nearly half of the age group (45 percent) now say they spend less time out to save money, while 29 percent say they will use less energy when cooking.
Retirees are also looking for ways to increase their income while waiting to find out if their state pensions will increase with inflation.
Prime Minister Rishi Sunak and Chancellor Jeremy Hunt have silenced whether the triple lockdown will remain in place when they announce new measures in the fall budget statement on Nov. 17.
Nearly one in five seniors (18 percent) say they move their savings to an account with a higher interest rate, or review their benefits to make sure they’re claiming everything they’re entitled to.
According to Key. Nearly half of over-55s say they go out less to try to save money
>> View the latest easily accessible savings rates using our independent best buy chart.
However, one in four say they can’t do anything to increase their income.
Will Hale, CEO of Key Later Life Finance, said: ‘Most people in the UK are not only fully aware of the impact of the cost of living crisis, but are choosing to create economies where possible to either make more money. earn or give a boost. their financial security.
“The over-55s are no different, but with more of their spending on food and utilities, they’re particularly vulnerable to the price hikes we’ve seen.
“While building a nest of retirement benefits over your career may be the best approach, it’s not for everyone, so they really need to consider all options, including equity.
“With over 65s currently sitting on £2.95 trillion in unmortgaged equity, there is no doubt that real estate can play a role in helping older people maintain their standard of living in these challenging times or even helping younger relatives.” they probably also help you feel the pinch.’
Equity release products have steadily risen in popularity, in September it was revealed that a fifth of the plans are now being closed to cover daily living expenses.
But releasing stocks isn’t necessarily the panacea for the cost of living crisis. While they are a way for homeowners to access tax-free money, interest rates can be prohibitive and prevent them from passing on their home to their families.
Canada Life’s Alice Watson says stock release products will be far at the bottom of the list of options a financial advisor will give older homeowners when looking for alternative sources of cash.