Pensioners '˜reliant on loved ones' to make ends meet

A QUARTER of pensioners in Yorkshire are relying on cash hand outs from loved ones to make ends meet, new figures reveal.
More than a million pensioners are dependant to some degree on the support of family and friendsMore than a million pensioners are dependant to some degree on the support of family and friends
More than a million pensioners are dependant to some degree on the support of family and friends

Across the country, more than a million pensioners, or one in nine, are dependant to some degree on extra support from family and friends, according to the State of Retirement report from Liverpool Victoria (LV).

Those approaching retirement are even more likely to be in this situation, with almost a third, some 27 per cent, who are set to retire in the next 10 years saying they sometimes rely on loved ones for help.

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In Yorkshire, 24 per cent who are either approaching retirement or already retired have to rely on occasional support from family and friends.

Steve Chu, chief executive of Age UK SheffieldSteve Chu, chief executive of Age UK Sheffield
Steve Chu, chief executive of Age UK Sheffield

Many are turning to their loved ones for advice and support instead of taking professional advice, the survey of more than 1,500 over-50s found, with six out of 10 nationally admitting to taking financial advice from friends and family. Just one in four over-50s had taken, or planned to take, professional advice about their retirement.

The report also found that nearly a quarter of pensioners worry their cash will not stretch throughout their retirement. More than half, 55 per cent, of people within 10 years of retirement said they are worried about money.

One charity in the region, Age UK Sheffield, urged people to take advice from financial matters - especially benefits that may be available to them.

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Chief executive Steve Chu said: “In Sheffield, in 2015/16, we helped 553 people claim an additional £2.5m per year that they hadn’t been claiming – that’s an average of an extra £87 per week, per person.

Steve Chu, chief executive of Age UK SheffieldSteve Chu, chief executive of Age UK Sheffield
Steve Chu, chief executive of Age UK Sheffield

“We have had cases of people who couldn’t afford to heat their home, and found we were able to help them access four or five additional benefits, sometimes totalling more than £200 per week.”

In Sheffield, 22 per cent of those approaching retirement or already retired said they have had to rely on occasional support from loved ones.

Mr Chu said poverty among older people was “heart-breaking”.

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“It reduces length of life and quality of life. We know there are thousands of older people who are entitled to claim additional benefits to bring them up to a basic standard of living, but aren’t claiming them.

“All local Age UKs provide a free, impartial Information and Advice service, with trained staff who assess whether someone may be entitled to additional benefits, and help them to make the claim.”

Meanwhile, 22 per cent of pensioners said they are banking on using the value of their property to help them through their later years, by downsizing to a cheaper property, moving to a more affordable area or using an equity release scheme, the report found.

The report was critical of the pension reforms introduced in 2015, claiming they are too difficult to understand without professional help.

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John Perks, managing director of retirement solutions at LV, said: “A significant minority of pensioners rely on loved ones to help them financially during retirement and those approaching retirement seem to be in an even worse situation.

“Given the increasingly complex choices consumers have to face about their pensions and, with the economic impact of leaving the European Union still unknown, we believe it’s never been more important consumers have access to professional advice at retirement.”