Abacus Daily Debt News

Low interest rates ‘may result in debt worries for the elderly’

Elderly people may soon face debt worries because of low interest rates, it has been suggested.

Mark Bower, managing director of moneymaxim.co.uk, said the changes could result in lower income for individuals over a certain age.

The industry figure noted lower interest rates will mean that whereas in the past older people "had budgeted for a certain level of income from their funds, they are just not seeing that income being achieved at the present moment in time".

Changes introduced by the government relating to pensions will also adversely affect the elderly, he explained.

Mr Bower claimed linking final salary schemes to the consumer prices index instead of the retail prices index will mean reduced long-term expenditure for them.

A recent study carried out by LV= found millions of Britons may face financial difficulty during the first five years of retirement as they are suddenly hit with extra monetary requirements.

By Joe Shervin