The older generation may have a reputation for being prudent with their money but research has revealed that almost one fifth of over 50s do not save. A survey by Saga found that 20% of men and 19% of women over 50 are saving nothing at the moment and one in ten of 50-59 year olds don’t even have a savings account.
These surprise findings indicate that a worrying number of older people are not putting money aside. This could be due to a number of factors, such as rising unemployment levels, falling interest rates, or high inflation, which are leaving older people struggling to afford to make ends meet each week and leaving them with no extra money to put by.
The tough economic climate and ever-increasing pressures on household budgets may also be affecting the amount they are able to put away in their savings accounts.
Of those over 50s who do save, the same survey revealed that men save more money than women. 29% of men put away £250 or more each month compared to 19% of women. However, this disparity between the genders could be due to men generally earning more than women and consequently being able to save more.
The Scots proved their reputation for being careful with money, with 85% saving each month, however the same couldn’t be said of another region famed for their frugality - almost a quarter of people from Yorkshire and Humberside (23%) don’t save.
Londoners came out tops for stashing away the most money into their savings account each month. Over a quarter of Londoners (27%) put away £250 a month, but this was followed very closely by people from the South East, North East, Scotland and Wales (all 26%).
Roger Ramsden, chief executive, Saga Services, said: “Some of the regional stereotypes about areas of the country where people are more cautious with their money have been supported, but others have been contradicted by our survey.
It is concerning that almost one fifth of over 50s don’t save and one in ten of 50-59 year olds don’t have a savings account. This is worrying considering that many of those surveyed will be approaching retirement and, if these people are not saving in addition to their pensions, they may find themselves struggling to make ends meet when they do eventually retire.”
Saga offers a range of telephone, internet and postal accounts with a choice of variable or fixed rates. Please visit www.saga.co.uk/money for more information about Saga’s financial products.
Notes to Editors
• Populus interviewed 10,203 Saga customers, all aged 50 and over, online between 29th and 31st August 2012. Populus is a member of the British Polling Council and abides by its rules.
| Save nothing
| Save £250 or more each month
• Saga offers a range of competitive savings accounts to suit all needs from regular savings and ISA accounts to longer term fixed rate deals
• All accounts offer the option to have interest paid monthly or annually
• Saga Savings accounts are available to UK residents over 50
• All Saga Savings accounts are provided by Birmingham Midshires, a division of Bank of Scotland which is authorised for accepting deposits by the Financial Services Authority.
For further information regarding Saga Savings accounts, please visit www.saga.co.uk/money or call 0800 111 4935.