Older people feel the pinch more than under 60s

More than half of those aged over 60 are finding it more difficult to make ends meet as the impact of the recession bites.

This is according to an ICM poll for Age UK, which revealed that 4.5 million people over 60, 33 per cent, can only just afford the basics.

Around ten per cent admit that they are finding it "quite difficult" or are "really struggling" to make their income stretch to over all of their outgoings.

One in seven have claimed they go to bed earlier than they want to just so they can stay warm, while 13 per cent will boil the kettle for hot water rather than turn the boiler on.

"Older people tend to show a great deal of resilience in managing their money and eke out their income, but this new report demonstrates exactly how emotionally draining it is on for older people to constantly survive on a lower income," said Michelle Mitchell, charity director of Age UK.

Annie Shaw, founder of CashQuestions.com, explained that this may be because inflation has impacted the spending power of older people more than it has younger generations.

Those aged over 60 spend a higher proportion of their income on domestic fuel, food and rent, which have all increased recently, while younger people have enough disposable income to spend on electrical goods and entertainment.

She suggested that older people need to look at their income and outgoings to see where any savings can be made and then shop around for the best deal for utilities, phone bills and similar products.

"They should be making sure their outgoings are as little as they need. The other thing is things like food. [Older people should] make sure they are downgrading their shopping. If they aren't used to having own-brands, they [are] usually used to buying brand products, perhaps go down a level as it were," she added.

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2012-01-25 12:48:29 © Moneyextra.com