Pensioners living for longer expected to struggle with finances
Paying for care could become even more of a struggle for Britain's pensioners, who are significantly more likely to live to 100 than their own parents.
These latest Office for National Statistics figures demonstrating increasing life expectancy between generations have led MGM Advantage to predict an accompanying long term decline in conventional annuities.
The mutual predicts that falling annuity rates will lead many pensioners to fall below the poverty line as inflation cuts spending power the older they become.
MGM sales and marketing director Aston Goodey explained that this could prompt a change to the type of retirement product pensioners typically choose.
"As people in retirement look for ways to enhance their income, we expect to see a long-term trend of more choosing investment backed annuities as opposed to conventional fixed term ones," he noted, adding that these provide the best opportunity to grow incomes with "the comfort of a minimum income guarantee".
The predictions come after it emerged that four charities in Richmond will receive nearly £400,000 in grants to support elderly and isolated people, in particular respite for dementia sufferers.
Posted by Natalie Edwards