Saga Personal Finance, the over 50s financial expert, comments on the Bank of England decision to reduce interest rates to 1%, creating further gloom for savers, particularly pensioners, who are the innocent victims of the credit crunch.
Roger Ramsden, CEO of Saga Personal Finance, said: "Savers have seen interest rates slashed from 5.75% 18 months ago to 1% today which has resulted in a significant drop in savings incomes. For example someone who invested 20,000 in one of our fixed rate bonds last year would have received 115 per month interest after tax, however those opening accounts at the new 1% rate from today would receive 45 per month. The recent rate cuts have had limited effect on the economy other than supporting those on variable rate mortgages. The cuts have hit savers hard, particularly those in retirement who rely on monthly interest from their savings, this means that the effect of the rate cut has been to take money out of the economy as people have less interest to spend. "
If an insurer does not want to take on the risk a particular age group then they ought to be compelled to refer people to an independently accredited list of providers who will be able to quote.
A Saga poll of 10,500 people aged over 50 found that 25 per cent of the over 65s had been turned down for travel insurance because of their age. But 93 per cent of these had gone on to find insurance from another company.
The issue is about people knowing where to go for cover so they can continue enjoy life to the full..
Saga provides insurance for the over 50s without limits and welcomes older people of any age - indeed the oldest travel insurance customer recently went to Italy to celebrate her 100th birthday.
For further press information please contact the Saga Press Office on: 01303 771529.