Research on behalf of Saga Savings* has revealed that nearly a third (31%) of Brits are worried they won't have enough money in the next five years to cover the costs of their domestic bills.
Pressure to save for 'rainy days' has become more acute, with worries about increased day to day bills (34%) and redundancy fears (11%) causing many Brits to think hard about their savings.
Some of the younger generation are also now tightening their purse strings and spending less in order to increase their savings, with one in five (20%) under 35s now saving more than they did previously.
However, whilst the majority of people (41%) are currently spending less because their disposable income has diminished, one in eight (12%) are burying their head in the sand and don�0027;t even want to think about the financial future. A third of Britons (33%) are failing to take heed of their own concerns about their finances and haven't changed their spending and saving patterns since the onset of the credit crunch.
Nearly two in five (38%) over 50s say they haven't changed their spending habits since the onset of the credit crunch, but as over a third of the over fifties (34%), have an ongoing savings pot they are consequently more likely to be well-placed to weather the storm.
The research also revealed that, despite the downturn, people are tending not to alter their portfolio of investments, in terms of the proportion held in cash, shares and property. 44% say they have not changed the way they save, with over half of over 50s (52%) sticking to their original investment plans to safeguard their savings in the current climate.
Saga Savings has continued to provide the over 50s with market leading savings accounts, and has seen investments more than double over the last 12 months to 3.5 billion as people search for good rates from a brand they trust.
Andrew Goodsell, Chief Executive, Saga Group, concluded: "People over 50 have traditionally been prudent savers and are feeling the effect of base rate cuts. However, they are better placed than most and are looking for brands they can trust with their money."
Saga is calling on the Chancellor to consider suspending all basic and starting rate tax paid by pensioners on savings and dividends in the forthcoming budget on April 22nd . We estimate this would help around nine million people who otherwise face a significant fall in their standard of living, becoming the innocent victims of the credit crunch.
Notes to Editors-
*Analysis carried out by Opinium Research on an online poll of 2,129 British adults between 10th to 13th February 2009.
For further press information please contact the Saga Press Office on: 01303 771529.