Prolonged low interest rates may be great for those with mortgages – but older people rely on savings to provide an income in retirement – and they have seen their income slashed and the value of their savings eroded.
Saga is calling for a change in the ISA rules to allow older savers the flexibility to use the whole ISA allowance for cash deposits, rather than have to invest half in shares as many older savers eschew the vagaries of the stock market.
"Providing flexibility would provide a much needed boost for those who did the right thing and saved, and now find their savings income slashed." said Roger Ramsden, Chief Executive of Saga Services.
The Government previously recognised the importance of saving for older people by providing a higher ISA allowance for the over 50s.
Roger Ramsden continued "We also need a budget for jobs – and one way to promote employment is to cut the tax on jobs that is employers NI – in particular Saga is calling for a halving of the NI for firms taking on people aged under 25 and also for the long term unemployed in a bid to stimulate employment opportunities for these groups of people who are more likely to remain out of work for longer.
"This year Saga plans to recruit some 800 people – our expansion over the last couple of years has seen us open a new contact centre in Hastings that now employs 350 people. By taxing employers less companies across the UK could do more to get younger people into work and take the long-term unemployed off the dole."