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55 is the new 40 in terms of financial freedom

28 August 2007
A survey from Birmingham Midshires has shown that, contrary to the slogan ‘life begins at 40’, those aged 55 and above are actually most likely to be enjoying financial liberty.

Director of savings operations at Birmingham Midshires, Jason Robinson, said: “After years of bringing up children and working hard, those in their 50s can look forward to a more relaxing way of life, with fewer financial strains.”

The study, which involved 900 people from the UK aged 50 and above, found that 47 per cent of those in their early 50s still had children living at home, with 49 per cent still giving dependents financial support. However, of those aged 55 and over, just one in six has children living with them and only one-quarter is still supporting children financially.

Mortgages are also more likely to have been paid off by 55, according to the savings provider. 22 per cent of respondents aged 55 and over are still making mortgage payments, compared with 41 per cent in their early 50s.

Mr Robinson attributed the findings to “a number of economic and social factors, such as rising house prices and people having children later in life, all of which take their toll on the age of financial independence.”

The study also showed that over 50s in the London area are most likely to have children still living at home (33 per cent), while those in the south are least likely to still have children at home (15 per cent)

The area with the most children still living at home was found to be East Anglia, with nearly half of the participants from the area still supporting children financially.

Parents in Scotland were better off, with just one in five of those over 50 providing for children. 80 per cent of Scots in this age bracket had completely repaid mortgages compared with 62 per cent in East Anglia.

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