MGM Advantage has published new research which shows retirees are making cutbacks wherever they can in order to help cover the rising cost of living. 41% of retirees have said they have cut back over the past year, including 27% who have cut back on household fuel bills, while 23% have cut back on food shopping.
The research shows some ingenuity when it comes to retirees managing the rising cost of living. 3,630,000 retirees (33%) have changed shopping habits by using discount stores or are travelling less frequently. 14% have delayed replacing their car, while 15% are using public transport more often or walking. 13% (an estimated 1,420,000 people) have sold things on internet auction sites to generate some cash.
Andrew Tully, pensions technical director, MGM Advantage said: “We are in the midst of a cost of living crisis and this shows no sign of going away. Times are tough, but retirees are resilient people who have even turned their hand to internet auction sites to generate some cash. But these figures highlight the perilous state many find themselves in, cutting back on essentials like food and heating to make ends meet.
“Retirees find it particularly tough as they face the double whammy of a typically fixed pension income and currently low returns on their savings. They also spend a disproportionate amount of that income on the essentials to live compared to other groups. People need to consider inflation when thinking about their income needs. Over a 20-year period, you could find your buying power halve through inflation2. This makes it vitally important to ensure any pension income considers the rising cost of living.”
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