Retirees face pressure on household finances

Many people approaching retirement are finding their savings stretched even further than usual, a study has found.

MGM Advantage found that 4.5 million people have reduced their daily outgoings as a result of inflation, while 601,000 retirees have been forced back into part-time work.

A third of retired people identified that they have taken fewer holidays as a result of spending cutbacks, while 7% have given up hobbies to save cash.

Craig Fazzini-Jones, Director at MGM Advantage said: "You cannot start preparing for retirement too soon, whether that means paying into a pension, building a pot of savings or talking to a professional for advice."

He added that many people have "unrealistic expectations" of what life will be like once they have finished work.

It was recently suggested by the National Association of Pension Funds that people need more time to come to terms with the rise in the pension age.

Posted by Martin Ellis