Financial shocks sink over 60s finances into poverty.
Over 60s finances are just too poor to allow for the cost of dying. They just don’t have the income to recover from the financial shock – which makes the emotional shock even worse.
Sun Life say that at least 10% can’t cover their every day living costs, never mind find even the basic cost (alone) of a funeral. We would suggest that the real truth is that far more find it hard, so buying a prepaid funeral plan as early as possible provides peace of mind and certainly reduces the extra stress of a death.
The research shows that over 60s are unprepared for end of life costs. 23% have no savings, increasing to 29% of women and 32% of full-time carers. The survey identified over 60s finances fell mainly into distinct groups:
- Survivors– 70% have enough income for essentials.
- Strugglers– 21% find their income does not always cover costs so they need raid savings.
- Sinkers– 10% whose income does not cover basic costs. They must rely on savings or family and friends, or get into debt.
Those with savings must still be careful, unless they are very substantial. In 2000, the 60-69 demographic had a median £5,130 in savings; but, by 2010, the same age group (now 70-79) had £4,000 – a reduction of £1,130. But not even the younger age group have enough savings to pay the full cost of dying and probate.
For older folk omes there is increasing pressure from a rising cost of living, reducing the ability to continue savings. The average income is £737 per month, which decreases throughout retirement. 35% have nothing left once the basics have been paid, rising to 43% of full time carers. So pensioners are at risk of being exposed to financial shocks with inadequate savings. For example central heating repairs or the car dying affect one in three over 60s but, with average savings of £4,022, there is little financial cushion.
So it is vital to save for retirement while you can, and important to consider prepaid funeral plans as the cost of dying rockets. And if you can’t afford a whole funeral plan, you could consider one between a couple. Or if that is still out of reach, a family funeral plan. Contact us for details. Over 60s will have a harder time, but we can help, at least with the funeral.