On the surface the rising cost of essentials seems to be the biggest risk to the standard of living of over 55?s. However concerns over the declining returns on savings could actually be the hidden threat to maintaining the standard of living. Over-55?s recognise this as an ongoing issue, for instance concerns reached a high in Q1 of 2014, and most recently have amplified due to the cutting of the base rate by the Bank of England to 0.25% as of August 2016. If the interest rates were to improve, the expectation is that returns on savings will not. As such this maintains fears that the cost of living will also grow leaving less money for savings.
