Will over 55s be forced into home income plans?

Two-thirds of Brits (64 per cent) are worried about tax increases over the next five years, compared to only 18 per cent that are concerned about the rising cost of living, according to an Aviva Retirement poll.

Those who expect to earn under £750 per month are most concerned about the impact tax changes will have on their finances, with spending on food, fuel, light and entertainment expected to be among the biggest costs.

Over 55s have already seen their incomes fall by an average of four per cent between February and May this year, providing them with an average monthly income that is 31 per cent lower than the UK household average.

Commenting on the findings, Aviva at-retirement director Clive Bolton explained: "This age group is particularly exposed to any sudden VAT increases or changes to fuel charges and this report really shows how vulnerable they feel to any sudden increases.

"Many people in this age group are concerned about the rising cost of living due to their relatively fixed income."

Further research by Aviva published this week indicates that nearly 70 per cent of adults intend to work beyond their retirement date.

Ashall Glover Financial Services home income plan advisers