Is the Cost of Living Too High for Over-50's?

Seniors Seeking to Save Money on Essential Items

May 19, 2009

The cost of living is rising faster for over-50's than any other age group. Increasing numbers of seniors are opting to save money by cutting back on essential items.

In April 2009, Age Concern and Help the Aged produced a joint report that showed that over-50's were struggling to keep pace with the rising cost of living. Age discrimination is still rampant as private sector workers are unable to work beyond compulsory retirement age. They cannot supplement their income so have little alternative but to try to save money by cutting back on essential items.

Rising Living Costs Causing Money Problems for Seniors

Almost 24% of seniors believe that their living costs have risen during the past 12 months. In order to save money on essential items, seniors are increasingly resorting to survival tactics developed during World War II and the post-war years. One in five over-50's- the equivalent of 2 million seniors- are currently living below the poverty line.

How Seniors Are Reducing Living Costs

How the State Helps with the Rising Cost of Living

Chancellor Alistair Darling has reaffirmed his pledge to increase the state pension by 2.5% as well as maintaining the winter fuel allowance at £250 for a further 12 months. There is also a pension credits system where seniors receive a weekly top-up so a minimum subsistence income is achieved.

Is the Government Failing Over-50's?

Many over-50's aren't convinced that the government is concerned by their plight; 68% of seniors believe that their concerns aren't important to politicians. A further 59% don't believe that they will receive any further state assistance during the current recession.

Michelle Mitchell, charity director for Age Concern and Help the Aged, said: “Maintaining the Winter Fuel Payment, measures to help grandparents and help for low-income savers will provide cheer to pensioners in an otherwise gloomy Budget." The government was criticised for it's failure to tackle fuel poverty.

Age Discrimination Remains Rife

The Employment Equality (Age) Regulations 2006 was designed to prevent over-50's from age discrimination in employment‚ training and adult education. However, maintaining a compulsory retirement age seems contrary to the overall objective of this legislation. It appears especially puzzling given that compulsory retirement is not applicable to public sector employees.

There are currently 89 Members of Parliament (MP's) who would have had to retire had the same rules applied to them.

Unemployment Higher Amongst Over-50's

Seniors are amongst the first to lose their jobs should a company choose to downsize. Unemployment for over-50's is rising 34.8% faster than for any other age group. To make matters worse, the chance of finding a new job decreases by 25% with every passing year.

Despite the 'success' of other forms of anti-discriminatory legislation, age discrimination appears to have been ignored by politicians. This leaves over-50's struggling to find work and having no alternative but to cut back on essential items in order to save money and contend with the rising cost of living.

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