However, despite a fairly significant fall from the year before, 7.4 million people struggling to pay bills and credit repayments each month is concerning and stresses the challenge many people face in getting by each month, let alone thinking about saving for their long-term futures.
“The report calls out renters as a particularly financially vulnerable group. With levels of home ownership falling in the UK, people currently unable to prioritise long-term saving due to heightened short-term financial pressures could face a double shock when it comes to retirement as they find themselves still having to pay housing costs, with limited savings. We’ve quickly moved from an extremely low to a much higher interest environment, and many who do get on the property ladder could find themselves still paying off their mortgage deep into retirement as the popularity of 30+ years repayment terms increases. At the same time, most estimates of the savings you need to live comfortably in retirement, including the Pensions and Lifetime Savings Association (PLSA’s) Retirement Living Standards, assume no housing costs – increasingly, this is not the case for all.
“Hopefully, with the lower energy price cap kicking in this month, further falls in inflation forecast and heightened speculation of upcoming interest rate cuts, we’ll continue to see an improving picture – easing the pressure on people both in the short-term and in years to come.”
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