RETIRED people have been found to spend less in the last few months as a result of the COVID-19 crisis, but Britons been urged to consider a number of areas carefully going forward.
Retired and older people have undoubtedly been adversely affected by the lockdown crisis and its ongoing effects. Older people, particularly those with certain underlying health conditions, were asked to shield, meaning they were forced to remain at home. The aim of this practice was to prevent them from contracting the disease, but it often meant many remained in their homes for a number of months.
And the general lockdown appears to have had an impact on spending more widely.
Research conducted by Which?, the consumer magazine, showed spending by those who are retired has dropped.
The survey asked 6,300 people about their spending habits during the crisis.
And it revealed spending is now down five percent on last year.
The spending areas witnessing the biggest cuts are those which have been affected by the impact of the pandemic.
Retired people who are single were found to have spent a fifth less on extended holidays.
In terms of recreation and leisure, spending is now down by 13 percent for couples, and 14 percent for single people.
But retired couples were found to be spending just as much on their groceries and utility bills.
However, Which? has advised older people to think carefully about a number of areas of their lives.
The consumer magazine found income targets for retirement often need to be taken into account to achieve particular goals.
Calculations have shown that once the state pension is considered, couples will need a gross annual income of £3,040 from private pensions to achieve an essential net income target.
This rises to £11,040 for people who wish to secure a comfortable retirement, and £29,790 for people who want a luxury retirement.
Single people, then, will need £5,020, £13,635 and £27,395 to achieve these retirement goals respectively.
Jenny Ross, Which? Money Editor, commented on the findings.
She said: “The results of our survey provide a detailed picture of the spending habits of people in retirement, which should provide those preparing for it with a better idea about how much they’ll need in their pension pots.
“Perhaps unsurprisingly, the impact of coronavirus has seen retirees cut back on their spending in areas like travel and leisure this year.
“There is clearly concern about how the economic instability may affect people’s savings.
“If you’re yet to retire, think very carefully about reducing your pension contributions or opting out altogether, as this could set back your retirement plans.”
Those who are planning for their retirement may consider speaking to a financial adviser.
These individuals will be able to provide further insight into a person’s individual circumstances and how they may wish to proceed to meet certain goals.