Cost of living having devastating impact on finances of older people

The soaring cost of living is having a devastating impact on the finances of older people, a study shows. 

More than two-fifths of 55 to 64-year-olds are struggling financially or are ‘up to their neck in debt’, insurer Aviva found. 

Across all over-55s, more than a third feel like they are having difficulties with money. 

The over-55s, who typically spend more on food, energy and fuel, are being hardest hit by inflation with most saying they would need more than £257 per month extra to feel financially secure. 

Inflation stands at a 40-year high of 10.1 per cent and households are bracing for an increase in energy bills from £1,971 to £3,549 in October. 

Aviva is forecasting the rate of inflation will hit 15 per cent when bills hike – higher than the Bank of England’s forecast of 13 per cent. 

The insurer said price rises for over-75s could climb to 18.8 per cent due to their spending habits. 

Three-quarters of over-55s are looking for ways to boost their income, with almost a quarter selling off unwanted items.