The cost of living crisis, with rising energy bills and food prices, have wreaked financial havoc on millions of Britons. Significant numbers of older people have found it tough, given many are on a low income.
While last year presented substantial challenges which have not abated in 2023, an expert has expressed optimism about the future for pensioners.
Ray Black, MD and founder of Money Minder, told Express.co.uk: “It’s reasonable to expect that 2023 should be a better year for pensioners than 2022 was, because of the increases in the state pension.
“The recent reductions in the wholesale price of oil and gas will hopefully benefit the UK and global economy in 2023 as it helps to bring down the cost of manufacturing, services imports and exports and lower prices feed through to us all.
“This is all presuming the prices stay down.”
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However, despite the help which is available, Mr Black warned pensioners will still need to take responsibility for planning their future finances.
He continued: “Pensioners will need to ensure their savings and pension plans are working really hard for them too.
“For those savers keeping their money in cash, the returns are just not enough to keep up with the current high levels of inflation, and each year that goes by, their money is effectively going down in value because it just won’t have the same spending power in the future.”
The expert stressed budget planning is likely to be the key to a successful retirement.
Firstly, Britons can work out what it costs to maintain their basic standard of living, including items such as heating, eating and lighting costs.
However, once this is done, they can move onto discretionary spending.
Mr Black added: “This can include ‘nice to have’ items like holidays, spending on hobbies and sports, eating out and gifts for friends and family.
“This is the section of budget planning that will help work out how much it costs them each month to make life fun through retirement.
“Taking into account the level of income needed to enjoy only a basic standard of living, it may help to explain why we have seen a recent increase in people staying in work after their normal retirement age or returning back to work.
“We could see more of that this year as the cost of living continues to rise and pinch at people’s pockets.”