Retirees 'forced to reduce spending'

By Tom Farley, Wed 1 Sep 2010 - Published in Pensions

Millions of retirees in the UK have had to cut back on their spending since they finished working, research has shown.

A study carried out by MGM Advantage found that 4.5 million people, or 38 per cent of retired adults, have reduced their daily expenditure since leaving employment because of an increasing cost of living and the danger of rising inflation.

In addition, 28 per cent, or around 3.2 million people, said they are taking fewer holidays now they are in their golden years, while 2.7 million are attempting to pay off more of their mortgage.

Craig Fazzini-Jones, director at MGM Advantage, said: "Sadly too many people have unrealistic expectations of their retirement and many expect it to be one long holiday. While this can certainly be the case for some, the reality is much tougher for the vast majority."

He added that people can reduce their financial burdens in retirement by preparing early with steps such as saving into a pension or seeking professional guidance.

Recently, Churchouse Financial Planning director Keith Churchouse claimed that many people in the UK feel they have to stay working for longer, as they cannot afford to retire.

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