Published On: Sat, Apr 13th, 2024

‘I’m an accountant – here’s why I’m worried about my state pensioner parents’ | Personal Finance | Finance

An accountant has spoken of his concern that his state pensioner parents are struggling to balance the books as bills increase.

The has increased 8.5 percent this month but many household bills have also gone up, including water bills, council tax and mobile and broadband.

Chris Demetriou, co-founder of Nottingham-based Archimedia Accounts, told : “Both of my parents rely solely on their state pensions to get by each month.

“I worry constantly about whether it’s enough to cover their bills and living expenses. It pains me to think they might have to start cutting back on little pleasures they’ve always looked forward to, just to make ends meet.

“That’s no way for hardworking people to enjoy their golden years.”

The news comes after the state pension needs to increase by an additional three to four percentage points, to ensure a comfortable retirement for claimants.

Mr Demetriou spoke about how pensioners should spend the extra cash from the 8.5 percent increase, which has boosted the full new state pension from £203.85 a week to £221.20 a week.

He said people should prioritise making sure their basic needs are covered. He explained: “Speaking from experience, nothing causes more stress than worrying whether you can afford your next meal or utility payment.

“Once the essentials are taken care of, any leftover increase should then focus on eliminating high-interest debt if possible.

“Credit card balances can quickly spiral out of control with compounded fees so I always suggest clients tackle those aggressively if they have some spare cash. Even paying down a personal loan a bit more each month can save on interest over the long run.”

He said a third priority for retirees is ensuring emergency savings are in place, with any extra cash put into a rainy day fund, even if you can only afford to put away £20 or £50 a month.

But he also warned that the increase in the state pension is not keeping up with the rise in living costs.

He commented: “Lord knows the storms keep brewing for pensioners trying to live on fixed incomes. Sadly, despite the increases, I don’t think they’re enough to overcome the rocketing inflation we’re experiencing.

“Food and fuel costs have jumped at a level most of us have never witnessed. Regardless of any state support, close financial scrutiny will be key to maintaining standards of living through this crisis.

“In any case, these certainly are worrying times for all retirees just trying to live comfortably after a lifetime of hard work. While the months ahead remain uncertain, staying informed, strategizing together and supporting one another can help ease the burden.”

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.

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