A report in the Daily Mail tells us that "Pensioners are wealthier than ever as weekly income exceeds the average income of the working-age population for the first time.
- Pensioners average net income is 3% higher than the average working-age population at £397 per week compared to £374
- House prices are a factor, with older people more likely to have paid off their mortgage while younger people spend longer paying off their mortgages
- People retiring now are also more likely to have had better returns on their savings
- These were statistics revealed by the Institute of Fiscal Studies
Rising incomes for current retirees have partly been caused by generous occupational pension schemes, which are increasingly unavailable to younger people, and the Government’s ‘triple-lock’ on state pensions.
Under the lock, state pensions go up by whichever is the highest of inflation, earnings growth or 2.5 per cent. The IFS said the scheme ‘needs to end’ before it becomes unsustainable.
However, the IFS warned: ‘It is unlikely that later generations will do as well. Future state pensions will be less generous on average, there has been an extraordinary fall in rates of home ownership, and, in the private sector, a collapse in membership of defined benefit occupational pension schemes.’
The IFS also insisted that further increases in pension age – already expected to rise to 69 by the 2040s – are likely to be ‘vital to the sustainability of the system’
From the evidence, it seems that now is the time for care home owners to ensure they are offering the best facilities so that they can attract the wealthier customers.
With interest rates at all time historic lows, and looking like they will stay that way until at least the middle of 2016, this is the time to invest in that refurbishment, that extension, the new landscaped gardens and staff training.
Contact Brent King to discuss your plans for improvements to your home/s and we can advise you of the best way to finance it.