The over-50s are slowly starting to see improvements in their finances, recent research conducted by Saga has revealed.
According to the Saga Quality of Life Index, fewer over-50s are planning cutbacks in their discretionary spending in the final quarter of 2011 compared to the first three quarters.
However, there are still problems for some, with 19 per cent cutting back even their essential spending due to high inflation. Of these essential areas of expenditure, heating was the most noticeable cutback due to the soaring cost of fuel.
Other items are also becoming more expensive, with 33 per cent of those surveyed expecting to see inflation top six per cent in a year's time. However, the average level of expectation was for inflation to be running at around 5.2 per cent in 12 months; well above the Bank of England's two per cent target.
Dr Ros Altmann, director-general of Saga, commented: “After falling consistently throughout 2011, I hope that the first signs of stabilisation in our Quality of Life index will turn into a solid improvement in 2012.
“It is also heart-warming how much the over 50s are helping others, despite high inflation, by supporting family and charity. These really are generous generations.”
Indeed, 32 per cent of over-50s were found to be providing financial support to their children and grandchildren, while 46 per cent are planning to give money to charity this Christmas.
