Squeezed out... two in five older Scots struggle with finances

HUGE numbers of older Scots are feeling the squeeze and are struggling to make ends meet.

A survey has revealed widespread concerns about cash among those over the age of 50, which means they are unable to put money aside for their future.

Age Scotland, which questioned more than 1,200 people as part of a project run alongside the Money Advice Service, found that two in five described themselves as ‘squeezed’ or ‘struggling’.

Critics of the Scottish Government said that many of those in the final years of their working life are being hit in the pocket by the SNP’s decision to force those earning £26,000 and above to pay the highest taxes in the UK.

Adam Stachura, Age Scotland’s head of policy, said: ‘Huge numbers of older people in Scotland are having a tough time with their finances, particularly those on low and fixed incomes as prices rise and bills get harder to pay. Our research has unearthed that more than half of single pensioner households and four in ten pensioner couples struggle to pay their fuel bills, for example.

‘The overall picture is stark, with more than 40 per cent of people surveyed as part of the Age Scotland Money Matters project selfidentifying as financially squeezed or struggling. Help is available though. Every year, billions of pounds in benefits and entitlements go unclaimed in Scotland.

‘One benefit that is underclaimed by older people is pension credit, with 40 per cent not receiving what they’re entitled to and missing out on hundreds of millions of pounds. This could make a real difference to their lives. There is still too much confusion, stigma, incorrect assumptions and lack of clarity over where to find advice and support on making a benefit claim if you are older.

‘Governments and councils must do more to educate and inform

‘There is still too much stigma’

people of what they are entitled to and how to easily access it.’

The research showed that 38.4 per cent described themselves as ‘squeezed’ financially, while a further 3.1 per cent said they were ‘struggling’, with the remainder saying they were ‘cushioned’. It also revealed that 62 per cent did not have a will, while 65 per cent had made no provision for their funeral.

Previous research has shown that 58 per cent of older people do not have a financial plan at all and are more likely to save for holidays than future care costs. Only 6 per cent of respondents said they had a plan to pay for their care.

Scottish Government research has also recently indicated 17 per cent of pensioners live in poverty, a figure which has increased by one percentage point over a year.

Murdo Fraser, finance spokesman for the Scottish Tories, said: ‘The SNP’s high-tax regime has hit Scottish families hard. It’s no wonder that so many over 50s are now feeling squeezed, especially given the recent income tax hike.

‘The SNP need to realise how much damage they are doing and start concentrating on growing our economy rather than raising taxes.’

Earlier this year, official figures revealed that record numbers of Scots pensioners are giving up on retirement because they cannot afford to stop working.

Nearly 85,000 Scots are working beyond the age of 65, with one in four of them citing financial reasons for doing so.