THE economic downturn is having a marked impact on the wellbeing of 'asset rich, cash poor' older people in Dorset, Bournemouth University (BU) researchers have found.

The study looked at the financial challenges facing retired older people, who are often considered to be asset rich but cash poor, owning property but not receiving a large monthly income.

As well as the economic downturn affecting their social, mental and physical wellbeing, researchers found that the income many older people expected when planning for retirement had not come to fruition, and they felt poor in relation to their previous lifestyle and expectations.

Lead researcher Dr Sarah Hean, Associate Professor in Health, Wellbeing and Ageing at BU, said: “It's really frightening. They have done everything right – saved, got pensions, taken out policies and ISAs and put money into property.

“But the return on investments at the moment is nothing – there is no interest on savings, and they can't sell their houses. They are just in a terrible place.”

Academics from BU’s School of Health and Social Care and Business School studied the experiences of retired home-owners from across Dorset, who were over the age of 65 and were not in receipt of a means-tested state pension.

They also conducted focus groups with service providers for older people - including health and social care professionals, financial advisors and professionals from the not-for-profit sector.

The research found that older people tended to manage their money carefully, and had an aversion to debt.

But this meant they were sacrificing non-essential activities like holidays, hobbies, and socialising, and worried about unexpected and potentially costly events, like large heating bills and repairs to their homes.

A New loans system to help adult students develop fresh skills through further education is being introduced in England. Known as 24+ Advanced Learning Loans, they are available for courses starting from August.

The Bournemouth and Poole College, the largest and longest established provider of further education courses in the region, is already geared up for the change. Antony Wright, Director of Adult Education at The College sees this as a great way to make learning affordable and accessible to everyone, and it will also help to deliver a fully flexible workforce to compete.

Below Antony answers some of the basic questions many learners will want answered before choosing a course and taking out a loan.