Elderly Population Facing Poverty

Crisis of the recession can be seen by the ones who are going to retire today. People between the age of 55 and 64 had to survive on just £40 a week. After paying all the domestic bills they will be left with only this much of money. According to the research by Aviva, they will have a £750 a month and £490 will be spent on the bills of housing, utilities, transport and clothing. Pension income has been fallen by 70 percent since 2000.

"It is concerning to see that many people may be struggling to get by on such a low income in their later years. While we often think of retirement as 'golden years', the reality is that for a lot of people, the outlook is much bleaker", said Clive Bolton, a director at Aviva.

People retired in January 2000 had an annual pension of £9,000 but the figure has fallen to £2,500 for those who are retiring today. Pension is used by the greater part of the pensioners to buy an annuity. A £10,000 pension pot could help you buy an annuity paying £866 a year in 2000 as compared to £624 now. There is a 28 per cent of drop.

Money facts blame the economic volatility for the fall of pension rate.