Four in ten of those approaching retirement are not saving
One four 50-65 year olds still paying off loans and overdrafts
Four in ten people (41%) between age 50 and 65 do not save on a regular basis, exposing a potential savings ‘black hole’ for Britons once their working life ends, according to new research from Saga Personal Finance.
At a time when policy has been discouraging saving, Saga’s Saving Survey quizzed over 14,000 people over the age of 50 about their saving and spending habits approaching retirement.
The results paint an alarming picture of people’s future income in retirement. 26% of 50-65 years olds are still paying off credit or store card debt and one in four are still paying off loans or overdrafts, indicating that they are spending beyond their means at a time when they should be investing for their future.
Perhaps more worrying still is the fact that one in five 60-65 year olds are still paying off their mortgage and are therefore likely to be using some of their pension to clear this debt.
Dr Ros Altmann, Saga’s director general commented: “Boosting their savings and pension pots is really important for the over-50s, to ensure a comfortable retirement. Worryingly, this is not happening. This will affect all of us in future, because if older people do not have money to spend, economic activity will fall and we are heading for economic decline. Our research highlights the dangers of advice such as that given by the Deputy Governor of the Bank of England recently that people should spend rather than save, at a time when millions of baby-boomers are in real danger of poverty in retirement.”
Notes to Editors -
The survey was conducted from 5th to13th August 2010 among the SAGA Populus Panel of 14,047 people.
For more information please contact the Saga Press Office on 01303 771529