People aged between 45 and 54 face triple whammy of challenges

Richard Harwood, divisional director of Brewin Dolphins Leeds office, said 45-54 year olds are in the perfect financial storm
Richard Harwood, divisional director of Brewin Dolphins Leeds office, said 45-54 year olds are in the perfect financial storm
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PEOPLE AGED between 45 and 54 earn more than any other age group but save the least, according to new research by wealth manager Brewin Dolphin.​

The report found that ​62​ per cent ​of this age group in Yorkshire​ classify themselves as only “getting by”, “making ends meet” or “struggling”.

​Brewin Dolphin found that they are facing a triple whammy of financial challenges​.​

Firstly the road to retirement is running out ​and this age group in​ Yorkshire face a pensions shortfall of £322​,000 – the difference between the size of pension fund they need to give them the retirement income they want and the size of the actual fund they are expected to have.

Brewin ​Dolphin said​ that it’s not just about finding more cash to save, but making better use of what people already have.

“Giving up that flat white on the way to work every day could add £22​,000​ to your pension​,​”​ said​ ​Richard Harwood, divisional director of Brewin Dolphin’s Leeds office.

S​econdly, ​​the report looks at the rising costs of ​this age group’s children’s​ university education and ​explains ​why parents should prioritise helping their children avoid taking on this much debt so early in their lives​.

It said that g​oing to an English university and borrowing the maximum in student loans to cover tuition and maintenance means ​that ​many ​students ​are starting their working lives with a huge £54​,000​ debt burden and will spend the next 30 years paying it back, hindering their chances of buying a first home or investing for the future.

​Thirdly, this generation’s ​financial life rafts have sprung a leak ​with​ 19​ per cent​ of this age group in Yorkshire relying on an inheritance to support their financial future​.

However their parents are living longer and​ ​this means that average annual care costs of £30​,000​ (£40​,000​ with nursing) are threatening to rapidly erode once relied-upon estates​.​

Mr Harwood​ said: “It’s no​ ​wonder the majority of this age group are feeling a big squeeze. ​45-54 year olds are in the​ ​perfect financial storm, facing the combined pressure of providing for their children, caring for​ ​their ageing parents, and trying to achieve their own career and retirement ambitions.”