Alliance And Leicester Reveals Over 50s Money Management Problems

Older people are increasingly struggling when it comes to managing their money, new research has revealed.

In a study carried out by Alliance & Leicester, it was revealed that the vast majority of those over the age of 50 have faced a rise in living costs. According to the financial services firm, some 98 per cent of Britons who have reached their half-century, also known to be a part of the baby boom generation, claim to have suffered from an increase in day-to-day expenses. However, despite the rise in money management difficulties that many people of this age demographic claim to currently be facing, half of them state that they are yet to take action to help improve their overall financial situation. Indeed, the majority of those questioned report that they are reverting to the make do and mend approach.

Overall, increasing utilities expenses were shown to have impacted the most on the amount of disposable income that the over-50s enjoy, with just over three-quarters (77 per cent) of those questioned reported to be struggling with such a financial demand. Meanwhile, 69 per cent claim to be encountering problems with increases in the cost of basic foods, with motoring costs accounting for 39 per cent of consumers money management problems.

By facing rising costs, those over the age of 50 could find that they are developing more dramatic problems in keeping up with various demands on their finances in areas such as personal loan and credit card repayments.

Furthermore, about one in ten people questioned report that the expense involved in going on holiday has become harder to manage, as 46 per cent cite difficulties in paying council tax.

Commenting on the report, Emma Walkley, current account manager for Alliance & Leicester, said: “At the moment, it really is a case of every penny counts for the over-50s and this generation more than any will be tempted to return to the make do and mend lifestyle in which they were been brought up. However, most of the regular outgoings that have risen so much are now set to fall, but they still need to look at how to save costs - and maximise their income - wherever they can. For many, this could be as simple as choosing a bank account that works harder for them, giving them better value for money in their retirement.”

Indeed, some seven per cent of those questioned were revealed to have switched current account provider in an attempt to improve their financial situation.

Whatever their age, those Britons concerned about their capacity to manage their money in the coming months might want to consider applying for a debt consolidation loan. By taking out such a loan, borrowers could find that they are able to merge various financial commitments into a single low-cost monthly repayment. This may prove to be especially useful after the Consumer Confidence study released by GfK NOP in October recorded a score of -36, a fall from the -8 recorded for the same month in 2007.

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