Income for seniors has been affected badly by falling interest rates. Even dividend incomes are dwindling as hard-pressed companies seek to cut yields in preparation for the difficult times ahead. Other than pension income, these form the two main sources of income for the silver saver.
Neil Duncan-Jordan, national officer of The National Pensioners Convention, estimates that 80% of pensioners rely on savings or share-based investment income to help fund day-to-day living.
Falling Savings Income and Dividends income For Pensioners
Figures produced by Birmingham Midshires show that those aged between 60 and 70 have an average of £35,900 in savings. With base rates at 2%, the silver saver has seen their income drop to a third of what it was 6 months ago.