Older people in the UK are borrowing and spending more than ever before, meaning they are saving less, research from pensions provider, Aviva has found.
The quarterly Aviva Real Retirement Report showed 43% of over 55s were confident about the economy and spent an average of £846 a month on basic and luxury items, compared with £792 during the same quarter in 2013. Over 55 year olds also appeared to have embraced debt again as they spend more on enjoying their retirement. The average amount owed was £2,269 – one of the highest figures seen in the report series – through credit cards, personal loans and overdrafts.
Property remains the largest asset for the over-55s, with a house, on average, costing £253,322 – the highest the report series has seen, although the majority own their own property outright.
The report showed that as pensioners feel more wealthy, they save less as their confidence grows around property prices and healthier income levels. Savings this quarter have fallen slightly, with the over 55s typically putting away £46 a month - £2 less than they did in Q1 2014.
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