Over 65s almost £7,000 worse off than GB young adults

Old may mean wiser but certainly not wealthier according to new research released today by Bacs Payment Schemes Limited (Bacs), the not-for-profit industry body behind Direct Debit in the UK.

The information taken from the Consumer Payments Survey (CPS), an annual survey sponsored by Bacs suggests that Brits starting out are an average of £6,670 a year better off than those old enough to draw a pension.*

On top of that, the over 65s are paying out more for regular individual and household bills than 16 - 24 year olds.** The survey also revealed that 50% of over 65s prefer to pay regular bills by Direct Debit compared to 27% of 16 - 24s.

As well as information on income and bill payments, the survey provides an insight into the general financial attitudes of todays over 65s. Latest data indicates that 96% like to know where they stand financially, 86% pride themselves on being careful with money and 63% claim they try and save money each month.

Jayne Stuart, spokesperson for Direct Debit, said: "There has been speculation recently*** regarding how financially well off those of  pension age are. We wanted to look at this in context to those who are just starting out in their adult lives where there is an expectation for a financial struggle. Not only do the over 65s have a lower household income but they seemingly also also have higher household and individual bill expenditure which would suggest that they have less disposable income."

Bacs has recently launched a new consumer website. For further information on how Direct Debit can help spread the cost of winter bills, manage monthly income such as pensions and save up to £200 a year on household bills please visit www.thesmarterwaytopay.co.uk

The information has been produced as part of the Consumer Payments Surevy (CPS), ongoing research sponsored by Bacs. The survey, which began in 1988, provides a consumer based measure of financial behaviour and includes attitudes to money, banking behaviour, and Direct Debit. The fieldwork, which is representative of the GB population, is carried out by Ipsos-MORI. 

* CPS 2006 data, where the respondent is not necessarily the head of the household, the average household income is £25,070 for 16 - 24 year olds vs £18,400 where the respondent is over 65
** Over 65s average spend per bill is £59.09 vs £54.86 for 16 - 24 year olds
*** Daily Mail, Why the pensioners of 1950 were better off than today's, 15.11.07



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