Income rises for over-55s

The monthly income of people over-55 has increased by 30% since 2010, research by Aviva has found.

The report shows that the rise in disposable income has led to over-55s increasing their spending on holidays, entertainment and recreation by 66% in the 4 years to Q1 2015.

Saving among over-55s is showing signs of optimism, with the average person putting away 4 times as much each month as they were in 2011 (£75 in 2015 compared to £17 in 2011).

The survey of more than 1,700 people over 55 also shows that attitudes have changed towards money have changed over the past 4 years:

  • 39% of respondents said they were worried about the cost of living in Q1 2015 – down from 83% in Q1 2011
  • 24% were anxious about care costs – up from significantly from 3% in Q1 2011
  • a fifth said they were concerned about the rate of return on their savings – down from 30% in Q1 2011.

Clive Bolton, managing director of retirement solutions at Aviva UK, said:

“Income gains mean that many over-55s can finally afford more room to breathe in their monthly budgets than was possible during the slow climb out of recession.

“Things are certainly looking up in the short-term, but it is important not to forget the bigger picture too. It is hugely encouraging that people are using some of their extra income to step up their efforts to save, as well as adding enjoyment to their lives.”