Older people in financial difficulty ‘cutting back on basics’

Recent research has indicated that one in ten retired people cut back old holidays, socialising, clothing and even heating costs as they worry about bills.

A study by Norwich Union has also indicated that two-thirds of people over the age of 60 survive on less than £10,000 per year.

The survey suggested that of all the regions in the UK, Scotland ranked last in the list of those most likely to make changes to their lifestyle to finance their retirement with only 26 per cent of respondents indicating that they would do so.

Dominic Fraser-Smith, group product manager at Norwich Union Post-Retirement Products stated that senior years should be enjoyed by older people and they should not have to resort to methods such as cutting down on heating.

Mr Fraser-Smith identified equity release as "an option those approaching retirement should consider as part of their retirement planning".

It may be advisable for consumers to seek legal advice before carrying out any form of significant financial transaction – such as equity release – to ensure that they are fully aware of any possible ramifications the process might involve.

Last month, research by Prudential indicated that people over the age of 65 in Scotland have some £41.6 billion of property equity.