In spite of the typical monthly income of British over-55s having risen by 4% since the start of the year, increasing from £1,303 (Q1 2012) to £1,361 (Q2 2012) it seems that some age groups are still experiencing financial difficulty with many 55-64 and over 75 year olds enduring a decline in savings according to Aviva's Real Retirement Report July 2012.
Since February 2010, over 75 year olds have seen their savings pots reduce from £22,500 (Q2 2010) to just £12,998 (Q2 2012) while the worst hit group - British 55-64 have seen their savings decline from £11,176 (Q2 2010) to just £9,373 (Q2 2012) as they struggle to keep up with day to day living costs.
Further data from Aviva has shown that the typical amount put away each month by all over-55s has fallen over the last quarter from £39.97 (Q1 2012) to just £31.05 (Q2 2012) with the majority spending their income on housing (22%) and debt repayments (15%) while a mere 14% is spent on food.
Danny Silver, expert in French real estate and MD of The Villages Group, comments: "It is clear that certain groups are finding it difficult to cope financially with debts 31% higher than this time last year, however as incomes increase there is hope that many will be able to boost their savings. Indeed, 61% of British 55-64-year-olds are still working but if there's any hope for a relaxing retirement they will really need to really knuckle down and save for their future."
As more and more people looking to move abroad for their golden years, seeking lower living costs and a better quality of life, France remains one of the most popular destinations affording a wonderfully warm climate, relaxed lifestyle, stunning natural beauty and easy access to the UK.
Silver adds: "Another point to remember is that there are 1.45 million UK retirees currently claiming housing support, which costs the state £5.3bn each year. The Strategic Society Centre (SSC) has predicted a 138% increase in the number of pensioners claiming housing benefit by 2060 meaning that the UK is going to be left with a very large bill. With this in mind and with UK over 55's struggling to cope financially it is no surprise that innovative "active living" Villages already popular in Australia, Scandinavia, the US and New Zealand are providing a viable alternative to this dilemma."
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