capaDATA
  • PERFORMANCE
    • Younger saver, 30 years to retirement – 5-year annualised returns
    • Younger saver, 30 years to retirement – 3-year annualised returns
    • Younger saver, 30 years to retirement – 1-year annualised returns
    • Older saver, 5 years to retirement – 5-year annualised returns
    • Older saver, 5 years to retirement – 3-year annualised returns
    • Older saver, 5 years to retirement – 1-year annualised returns
  • RISK/RETURN
    • Risk/Return – Younger saver, 30 years from retirement, 5-year annualised
    • Risk/Return – Younger saver, 30 years from retirement, 3-year annualised
    • Risk/Return – Younger saver, 30 years from retirement, 1-year annualised
    • Risk/Return – Older saver, 5 years from retirement, 5-year annualised
    • Risk/Return – Older saver, 5 years from retirement, 3-year annualised
    • Risk/Return – Older saver, 5 years from retirement, 1-year annualised
  • PROVIDERS
    • Aegon Master Trust
    • Aon Master Trust
    • Atlas Master Trust
    • Aviva Master Trust
    • The Bluesky Pension Scheme
    • Ensign Retirement Plan
    • Fidelity Master Trust
    • Legal & General Investment Management – WorkSave Pension Mastertrust
    • LifeSight (Willis Towers Watson)
    • Mercer Master Trust
    • National Employment Savings Trust (NEST)
    • Now: Pensions
    • The People’s Pension
    • Salvus Master Trust
    • Scottish Widows Master Trust
    • Smart Pension
    • Standard Life DC Master Trust
    • SuperTrust UK Master Trust
    • TPT Retirement Solutions
    • Welplan Pensions
  • Research
    • ADVISERS
      • Pension provider selection factors
      • Switching
      • Diversification
      • Illiquids
      • ESG
      • Green
      • Digital
      • Consolidation
    • PROVIDERS
      • Master Trusts by number of members
      • Master Trust defaults by assets and number of employers
      • Member charges
      • Employer charges
      • Master trust investment advisers
      • Equity exposure
      • Derisking
      • Asset managers used
  • NEWS
  • MORE
    • About
    • Advertise
    • Contact us
    • Privacy policy
    • Content syndication
    • Terms & Conditions
CAPA
No Result
View All Result

Over 75s expected to spend 8pc of disposable income on energy bills – research

14 November 2022
Govt to save £15bn ‘smoothing’ triple lock rises: PPI
Share on TwitterShare on FacebookShare on LinkedIn

Energy costs are predicted to consume 8 per cent of pensioners over 75’s available income this fiscal year, compared to 5 per cent for those under 50, according to a new report.

According to a report published by The Resolution Foundation on how the cost-of-living problem is affecting different generations, people over the age of 65 receive £500 less in government assistance than people between the ages of 40 and 65.

The impact of benefit and tax increases, however, is greater on these younger age groups. In contrast to a fifth of 65- to 74-year-olds, more than two-thirds of 20 to 29-year-olds had savings of less than one month’s salary. Over 50 per cent of the wealth in Britain is owned by the baby boomer generation and just 8 per cent of the population are millennials.

Hargreaves Lansdown senior pensions and retirement analyst Helen Morrissey says: “This report lays bare the carnage wreaked by the pandemic and cost-of-living crisis on people’s finances. Different generations are affected by different aspects, but no one has emerged unscathed. We see how older pensioner households are much more affected by energy price rises – spending on average 8 per cent of their disposable income on heating their homes which tend to be larger and much less energy efficient. However, their financial resilience means they are a group best able to deal with these costs.

“Older generations have been hit by inflation and have been less supported by the measures brought in by government to deal with the cost-of-living, but on balance their incomes have been supported by longer-term measures such as the pension triple lock which has helped boost the income of pensioners since its introduction.

“Changes to working age benefits since 2010 mean pensioners are on average £666 better off while non-pensioners are £816 worse off. Under the triple lock, pensioners are in line for a block-busting 10.1 per cent increase in their state pension for next year – though this is somewhat up in the air as the Chancellor puts together an Autumn Statement designed to plug a huge black hole in the public finances – the triple lock could be a casualty.

“The finances of younger generations look incredibly fragile as soaring inflation has caused a sharp decline in their real income. They are more likely to be paying for their energy by pre-payment meters and they are also less likely to be able to meet an expected cost from their own money. Support from friends and family is incredibly important in helping this group make ends meet and they are far more likely to have to resort to using things like their overdraft to meet their costs.

“It is a grim picture that shows no sign of getting better any time soon. As recession looms on the horizon, working-age people face the prospect of increased job losses and wages that don’t keep up with rising costs. Pensioners will see their pension asset values depressed by lower growth and their money will not go as far as it once did. Around four in ten adults said they didn’t think they would be able to save anything over the next 12 months and everyone’s real incomes will have fallen by the end of the Parliament.

“It’s a deteriorating picture backed up by the findings of HL’s Savings and Resilience barometer. According to its latest findings in July, around 62 per cent of people had enough savings to be seen as financially resilient – this tends to be around three months’ worth of essential expenses. However, by next year this could fall to 57 per cent with people on lower incomes, renters and single people particularly badly affected.”

The post Over 75s expected to spend 8pc of disposable income on energy bills – research appeared first on Corporate Adviser.

TweetShareShare
Previous Post

Over 44pc of adults won’t be saving any money in the next year

Next Post

Smart Pension passes one million member milestone

Category

  • By Provider
  • News
  • Not for search
  • Provider page archive
  • Uncategorized
  • video
CAPA data

© 2019-2024 Definite Article Media Limited. Design by 71 Media Limited.

  • About
  • Advertise
  • Contact us
  • Privacy policy
  • Syndication

Follow us

No Result
View All Result
  • About
  • Advertise
  • Contact us
  • Privacy policy
  • Syndication

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.AcceptReject Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
No Result
View All Result
  • About
  • Advertise
  • Contact us
  • Privacy policy
  • Syndication