LiveMore – Mortgage Strategy
More than half of the UK’s over-50s fear “they will not be able to heat their homes or pay other vital bills” if the UK slips into the recession predicted by the Bank of England, data from LiveMore shows.
The later life lender’s Barometer report adds that a third of 50-to-90-year-olds are concerned they will not be “able to put enough food on the table” throughout a prolonged slump.
Earlier this month, the central bank forecast a downturn will be shorter and less severe than it said in its November report, lasting just over a year rather than almost two, as energy bills fall and price rises slow.
The BoE says the UK economy will fall by around 1% this year rather than the 3% it forecast three months ago.
The forecast came as interest rates were raised to 4% from 3.5%, their highest level in over 14 years. Inflation at 10.1%, remains close to its highest level for 40 years.
Older consumers say the biggest issue they face is that rising prices are already eating into their savings, the later life lender’s study points out.
It adds: “This leaves them with ‘no extra cash for anything’ like travelling to see grandchildren, going on holiday or taking part in hobbies”.
Other older borrowers say they were worried that the worsening economy would make mortgage rate rises unmanageable, force them to put off their retirement date, or stop them from helping their children get on the property ladder.
LiveMore chief executive Leon Diamond says: “There is a misleading perception in the UK – particularly among younger people – that the majority of over-50s have had it easier financially and are comfortably off.”
He adds: “It is clear that many of the UK’s older people are being hit hard by the cost-of-living crisis and are already close to the edge financially – and now fear that its effects will continue to get worse if the UK dips into recession.”
The lender’s survey was carried out by data group Censuswide and questioned 2,041 UK adults across 12 regions about the state of their financial lives.