Useful Information for Pensioners Seeking Loans

loans for pensionersWhile we believe that people over the age of 65 may be self-reliant, latest surveys show that this is far from truth.

Reports show that more and more of these senior people are applying for payday loans. They want a guaranteed payday loan direct lender for their everyday expense which they cannot cover with their pension funds.

Charities are noticing for the first time a considerable rise in the number of women who need financial help. The women that get in touch with them cannot survive only on their pension.

women who need financial help

Cost of Being a Pensioner

As per a report, the typical living costs per year of a retired person are £10,830. Knowing that the full government state pension is £8297, it’s not surprising that pensioners need additional money. For many, there is no other borrowing option than to use loans for pensioners to meet their everyday living costs.

The report stated that the cost of being a pensioner differs drastically within the UK. The average cost of living per year in London is £13,400, while cost of living in the Northeast is £8,700 i.e. cheaper by a massive £4,700. The next cheapest is Wales where the living costs are £9,180.

Another report has defined the usual costs of the household of a retired person. On an average, 14% of their money is spent on fuel and housing and another 14% on food and non-liquor drinks. The next massive cost is for transport which is 11%. A considerable amount i.e. an average of £1,600 per year is spent on leisure. After all, they have the right to relax after so many years of hard work.


Pensioners Living as Poor

Studies have revealed that since 2015 there is a 40% rise in pensioners who are part of the population of the poorest 10% of Brits, i.e. from 1 million to 1.4 million.

Another organisation presented a different report in which it’s stated that the poor pensioners receive £3 of every £4 they get from their pension.

It’s difficult for anyone at any age to have a low income and have to struggle to eke out a living. However, for a pensioner living on their own and cannot pay bills and buy food, it’s particularly challenging.

Financial Help Available for Pensioners

Charities are pleading the government to provide more aid to the seniors who need to fight for their survival every month. However, there is some aid available for extremely needy pensioners. Studies show that £3.8 billion in total are unclaimed by senior people every year in Britain alone. Some of the government-provided benefits pensioners could miss out are short-term Incapacity Benefit, Pension credit and Winter Fuel Payment. During this vulnerable stage of life, it becomes even more essential that they take the benefit of these funds they are entitled to and avoid loans.

Typically, these older people might have enjoyed good standards of living when they were young. After retirement, they usually find their monetary security weakening and they become unable to bear even basic expenses. This may make them use alternative credit options as against seeking benefits since they have never taken this type of government assistance.

If these pensioners know about the benefits they are entitled to, it could indeed improve their life. It will help them manage their finances better, without depending upon loans.

The number of senior people seeking payday loans has doubled since 2015, with a rise of 95.2%.

Responsible lenders carry out affordability checks on all applications for loans for pensioners. This can help borrowers to get further in debt.

If you are retired, approach such responsible lenders and take information of government benefits so that your life would be easy.

loans for pensioners

You may also like...