Working within the National Audit Office for over 30 years has taught me that many people both young and old find management of money a difficult process. As people pass 65, and have to live on a fixed income, the need to manage their money effectively becomes even more important. This is not an easy time for people. As the graph in page 7 of HELP THE AGED SPOTLIGHT REPORT shows the level of income that some older people live on each week falls well below their minimum needs.
We have now talked to over 40 people in the discussion groups – both men and women; and 20 couples over the age of 65. As we anticipated there are still a number of puzzles and problems:
1. When asked why they organized the money in the way that they did, they said that there was no conscious decision: “It just happened”.
2. The lack of helpful financial information was a common theme; and the need for useful financial advice.
3. The part that family and friends played could be crucial: sometimes the immediate family might help at times of financial difficulty in giving money or emotional support. Equally, the older couple too might be supporting members of their family who had fallen on hard times. This could increase the difficulties of the older couple.
4. We have found in other contexts that when the main financial organiser in the family dies the surviving partner can find it difficult to pick up the pieces. Finance can be a frightening puzzle, especially when you have hitherto taken no interest in these matters.
There is an opportunity in our web survey - Link – to give your views and information on some aspects of interest. However, do you think that family and friends play an important part in how people organise and manage their money; and what role do they play? If you have recently had to organise the money after a spouse or partner has died what advice would you give others?
Tuesday 21 October 2008
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