While social and economic forecasts often differ depending on the source, there’s one thing that we can all agree on – the population of the United Kingdom is getting older. Through better healthcare and more overall knowledge surrounding our daily diets and routines, we are managing to stave off the grim reaper for much longer than was expected when we were born and as a result having to tackle with a world of new troubles and challenges as we enter our seventh, eighth and ninth decades.
This is an issue that is only going to increase in importance as the years roll on, too. The Office for National Statistics has predicted that the number of people reaching their 100th year will multiply hugely over the course of the next thirty years. In 2013, there was an estimated 14,000 centenarians in the country, but by 2037 there may be as many as 111,000. Combine this with the fact that one third of babies born in the 2010s will live to be 100 or more and you have got a society that needs to adapt its outlook in order to survive.
What does this mean for the finances of the elderly in this day and age? It means that the harsh reality of the matter is that the majority of us have grossly underestimated our living requirements, and as a result the number of pensioners seeking debt advice and support has begun to increase over recent years.
According to a report in the Herald, hundreds of thousands of Scots may be facing ‘decades of poverty’ throughout their retirement due to a misunderstanding of their needs – many of whom haven’t even cast thought about the monetary needs in years to come. One in four of the people questioned in the cited survey stated that they hadn’t considered their financial situation once they finish working, and the same amount believed that they could rely on their children once they reached that stage.
While this may be true for a percentage of the population, there is much less expendable wealth for the younger generations to access. As a result, saving pots across the board are smaller and elderly family members are increasingly exposed to debt problems as they look to borrow small amounts from payday lenders to plug holes in their pockets. Through underestimating the amount of time they will need financial provisions for, elderly Scots are only now waking up to the consequences of not having a nest egg to rely on.
Clive Bolton, Aviva’s managing director of retirement solutions, has sent out a stark warning to people who are struggling with their finances, stating that “even underestimating life expectancy by a couple of years could have serious consequences for someone in their later years who has outlived their savings, has care needs and has nothing to fall back on.”
So where does Trust Deed Scotland fit into all of this? As financial experts, we are perfectly positioned to help people with money troubles get back on their feet. Through our Trust Deed Wizard, we can work out the perfect debt repayment plan – one personalised to your needs, and one that is designed with the sole purpose of getting you back on your feet. Creditors will no longer be able to hassle you for payments you’re struggling to make, instead dealing with our liaison officer who will in turn provide you with supportive advice and financial guidance.
Ensuring that you rectify your financial difficulties sooner rather than later will help you avoid falling into the ever-expanding group of the elderly poor as you move towards your later years. Contact one of our consultants on 01224 418 267 today and take the first steps out of the red and towards the black.