Growing Concern About Cost of Living Amongst Over-55s
Nearly three quarters of over-55 year olds are concerned about the austerity measures and rising cost of living led by the VAT hike in January 2011. Homeowners concerned with the increase in the cost of living might consider an equity release scheme.
The research for these findings was carried out by Aviva. Their quarterly Real Retirement Report showed that 74% of over-55s said rises in the cost of living over the next six months was their primary concern.
This dropped only marginally when over-55s were asked what concerned them over the next five years – 70% agreeing that it was cost of living.
“Worried about the rising cost of living”
An equity release scheme could prove to be the ideal solution to some of these concerns for some homeowners. An equity release scheme has the potential to unlock a tax-free lump sum from the value of a homeowner’s property, giving them a supplement to income in retirement. Clive Bolton, ‘at retirement’ director at Aviva, said:
“Over the last six months, we have seen a significant increase in the number of over-55s who are worried about the rising cost of living. The Government’s Emergency Budget and Autumn Comprehensive Spending Review have also left this age group feeling nervous that they will receive less support from the State.”
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