More than half of over-55s (58%) are planning on cutting back on heating and switching lights off to make their money go further as inflation continues to bite, research from Key Later Life Finance shows.
With inflation hitting 10.1% up from 3.1%, over-55s are actively looking to reduce their expenditure and increase their income.
Inflation hits different age groups differently, but over-55s spend more of their income on food and utilities so are likely to have been felt particularly hard by recent increases.
Will Hale, CEO at Key Later Life Finance, said: “Most people in the UK are not only fully aware of the impact of the cost-of-living crisis but choosing to make economies where possible to either make their money go further or boost their financial security.
“Over-55s are no different but with more of their expenditure going on food and utilities, they are particularly vulnerable to the price increases we’ve seen.”
While most over-55s (86%) are making some changes, those working part-time who may have recently returned to the workforce to make ends meet, are the most frugal.
Almost a third of those working part-time are planning to use less heating (62%), and switch off lights if not in use (61%).
They are also most likely to buy cheaper ‘no name brands’ (41%) and plan meals more carefully (37%).
Retirees are also cutting back on heating (60%) and switching off lights (60%) but are reluctant to go out less (43%) as they arguably have less social interaction than those who are employed.
With the full state pension sitting at £9,628, over-55s are also looking at how they can boost their income to off-set the cost-of-living increases.
While some plan to cancel non-essential direct debits (29%), move their savings to better performing accounts (18%) or review the benefits they receive to ensure they are receiving their full entitlement, one in four (24%) say that there is nothing they can do to increase their income.
Retirees (28%) are the most likely to believe this.
Hale added: “With inflation rising, even the 39% who say they have factored inflation into their retirement planning are likely to be feeling the pressure.
“It is therefore perhaps not entirely surprising that 21% of over-55s say they either don’t know how they will or won’t manage financially with inflationary increases.
“While building up a pension nest egg over your career is arguably the best approach, this is not a possibility for everyone, so they really need to consider all their options including housing equity.
“With over-65s currently sitting on £2.95 trillion worth of unmortgaged equity there is no doubt that property can play a role to help older people to maintain their standard of living in these challenging times or indeed to assist younger family members who are likely also to be feeling the pinch.
“The best way to start is to speak to a specialist financial adviser who has in-depth knowledge of the market and the different products available as well as other options that might be considered.
He concluded: “Some may find downsizing works while others may want the flexibilities and protections offered by equity release or find that they are entitled to claim benefits they were not aware of – it is about finding the right option for their individual circumstances taking into account both immediate needs and long-term implications.”
