People aged over-50 are facing a lifetime of financial insecurity as a report reveals which age group is being hit the hardest by the cost of living crisis. Research from Edinburgh University’s Smart Data Foundry found economic inactivity rates have risen by a third for the over-50s age group since 2019.
The research also suggests that people aged 50 to 54 could experience double the financial vulnerability risk than those aged 70 to 74. Record-breaking rises in inflation and soaring energy bills are leaving those in their 50s and 60s facing the “perfect storm” of redundancy and ill-health, combined with a lack of savings on pension provisions, according to the leading UK data scientists.
People are being forced to consider tough financial decisions to make ends meet such as withdrawing lump sums from their pension pots to deal with the pre-retirement income shocks. With most retirement pots being worth under £30,000, these measures are estimated to create knock-on effects with income tax and benefit entitlement.
