Pensioners’ incomes have been reduced significantly due to cuts in the base rate, new research suggests.
Findings compiled by Safe Home Income Plans (Ship) show that in April last year, the average pensioner was receiving £158 a month on their savings, accounting for 28.26 per cent of their overall income.
Now, however, they receive £16 a month, which equates to just four per cent of their monthly income.
"Many pensioners have saved their whole lives with the expectation that they can use income from this capital and the state pension to fund a comfortable retirement," reveals Andrea Rozario, director-general of Ship.
He believes many are now struggling to come up with ways to supplement their income, which may lead them to consider seeking advice from a debt management company.
Official statistics show the life expectancy in the UK to be 76.9 years for males and 81.3 years for females.
Furthermore, between 1980-82 and 2004-06 life expectancy at age 65 in the UK increased by four years for men and 2.8 years for females.