Personal Pension  

Rising costs hit ‘eBaby boomers’

The pensions technical director for MGM Advantage claimed that baby boomers were “far from being immune to the problems facing many Britons”, with the rising cost of living, low interest rates and higher-than-wage inflation.

Although many baby boomers have benefited from defined benefit pension schemes, he warned that 21 per cent of those aged 50 and above were turning to sites such as eBay to raise extra money to make ends meet.

He said: “At a time when we would hope such people were saving in preparation for retirement a large number are instead selling off their possessions on eBay just in order to make ends meet. It’s a situation that is unsustainable and a potential horror story for the ‘eBaby boomers’ when they retire.”

Article continues after advert

MGM Advantage has called this section of society ‘Britain’s eBaby Boomers’, with a poll taken by the retirement provider showing that 37 per cent were afraid that the rising cost of living was a threat to their retirement plans.

Adviser view

Janet Davies, co-founder of Symponia, the trade body for advisers specialising in care fees planning, said: “The common denominator for all ages is their money and how to manage it properly, both for the here and now as well as the rest of a person’s life. Ensuring that funds can fulfil current wishes and last a lifetime is one of the reasons people should take financial advice.”