In a recent article by The Telegraph, six reasons were given for the plight of the British 55 plus generation, that are applicable to other developed nations.
Aviva, one of the world's largest insurance companies, prepared a survey of 13,000 people who maintain premiums with its company.
Its conclusions:
1. There has been a reduction in disposable income due to the rising cost of living which has eaten into people’s finances. Spare cash has become sparse over the past few years.
2. People's finances have deteriorated as the cost of household bills and everyday items have rose over the last year.
3. Many over-55s discover a financial equation that does not add up. They are positioned to spend their retirement constantly scrimping and saving to meet monthly financial obligations while worrying about how to cope with unexpected expenses.
4. The biggest expenditure increase for over-55s has taken place in debt repayments – such as credit cards and bank loans – and mortgage or rent costs.
5. Over 55 Brits repayed almost £70 of debt per month this year, compared to last year. Average monthly mortgage or rent costs are £50 higher than last year. They are falling behind rather than catching up.
6. Brits are replicating the 'the sandwiched generation' in North America. A growing trend has developed; parents are financially helping their children, leaving over 55s with less money for themselves.
The London Olympics 2012 were a joy to watch. Can the British government put on an equivalent show for the over-55s?