Retirees experience decline in income

Posted 28/06/2011

Many retirees may contact equity release experts for financial planning advice if they have experienced a decline in their income.

The latest Real Retirement Report from Aviva shows the average amount of money individuals over the age of 65 receive has increased slightly over the past year.

However, adjusted inflation for people older than 55 climbed to 4.7 per cent during the same timeframe, thus cancelling out the wage rise.

Long-term retirees over the age of 75 are most affected, as their average income has fallen from £1,416 in May 2010 to £1,178 at the same time this year.

Clive Bolton, retirement director at Aviva, said: “The sixth Real Retirement Report has found the over-55s under pressure from the rising cost of living.”

As well as being a solution for those with lower incomes, equity release could also help individuals without a pension.

Managing director of Churchouse Financial Planning Keith Churchouse recently said these are no longer a “popular vehicle for savings”, which may mean Brits find themselves without enough money during later life.

If you need help with equity release, the team at Ashtons Legal can offer professional advice.