OREANDA-NEWS. December 11, 2015. Over-55s are seeing the benefit of falling inflation as non-essential spending rises and unsecured debt falls, the latest edition of Aviva’s Real Retirement Report shows.

However, the report – which has tracked personal finances among over-55s before, at and during retirement since 2010 – highlights a 31% rise in mortgage debt among over-55s over the last year.

It also reveals that death or serious illness is growing as a source of concern among over-55s’ about their living standards over the next five years.

Income and spending:

  • Typical (median) monthly income for over-55s increased by 5% over the past year from 1,317 to 1,378 in Q3 2015, and by 26% compared to Q3 2011, when the typical income was 1,091.
  • Compared with Q3 2011, over-55s are spending 47% more on entertainment and holidays per month, 42% more on eating out or takeaways and 26% more on clothing and footwear. However, spending fell on motoring by 1%, debt repayments by 3% and cigarettes and tobacco by 13% over this period.
  • Over-55s are spending more on most types of expense compared to a year ago, with the only exception being fuel and light where over-55s spent 4 less in Q3 2015.
  • Since Q1 2011, there has been significant increases in essential areas of monthly expenditure such as food (up 9% from 182 to 198) and travel (up 4% from 28 to 29), as well as a 50% rise in spending on entertainment, recreation and holidays (from 56 to 84).
  • However, over-55s have also increased the typical amount saved per month to 206 in Q3 2015, up by 67% from 123 in Q3 2011. Compared with 12 months ago, over-55s saved 10 more per month in Q3 2015 (vs. 196 in Q3 2014).