The amount of unsecured debt is also mounting with the typical over-55 with unsecured debts owing £22,401 in the second quarter of this year, 31% higher than last year’s £17,112.
Outstanding unsecured debt was down marginally from Q1 this year when over 55s owed an average of £24,827.
Those aged 65-74 currently owe the most at £24,707, followed by pre-retirees at £23,565 and the long-term retired at £11,811.
On the flipside the UK’s over-55s saw their total savings increase over the last quarter, with the typical pot rising from £14,198 (Q1 2012) to £15,756 (Q2 2012).
The main driver behind this is increases in the saving pots of the retiring (65-74) rather than the pre-retirees (55-64) or long-term retired (over-75s).
Those aged 65-74 have benefitted from the removal of the default retirement age (DRA), allowing retirees to work longer.
In addition, this age group have typically boosted their savings with a lump sum from their annuities, choosing to save this money for later life rather than spend it.
The 55-64 and over 75 year old groups have seen pots fall with the over-75s seeing their savings pots whittled down from £22,500 (Q2 2010) to £12,998 (Q2 2012) as they dip into their capital to boost their income in order to meet rising costs.
Those aged 55-64 have also fared badly and seen their savings fall from £11,176 (Q2 2010) to £9,373 (Q2 2012) as they face saving for retirement, meeting day-to-day costs, and often assisting family members financially.
The typical amount put away each month by all over-55s has fallen considerably over the last quarter from £39.97 (Q1 2012) to £31.05 (Q2 2012).
Those who started off the year with the resolution to save more may have found the pressure of everyday costs has prevented them from saving as much as they would have liked.
The typical monthly income of the UK’s over-55s has increased by 4% since the start of the year (£1,303 – Q1 2012) and now stands at £1,361 (Q2 2012).
The increase is partly driven by the rise in the number of older people who are claiming their State pension while continuing to work – even part-time.
Official figures show the numbers still working had increased from 7.6% in 1993 to 12% in 2011, something which is likely to still be increasing since the recent end to the DRA.
However, while incomes continue an upward trend (+6% since Q4 2011 – £1,285) in real terms it is an increase of just £122 per month since the reports began tracking this (February 2010 – £1,239).
Furthermore, one in ten (10%) over-55s rely upon an income of less than £500 per month (Q2 2012).
Clive Bolton, at retirement director of Aviva, said: “With the average amount saved each month falling over the course of the year and the average debt held almost a third (31%) higher than at this point last year, it is clear that there are some who are still struggling with financial pressures.
“As incomes increase and with over-55s’ inflation easing back to 3.21% (May – Q2 2012), this is a good opportunity for people to boost their savings and try to pay down their debts.
“The more people can do to secure their retirement income before they stop working, the more prepared they will be to meet the expenses they encounter during their later years.”
