Over 50s give their views on new pensioner bonds and ISA changes

Tuesday 16 December 2014

• A third of over 65s plan to invest in a pensioner bond • Average investment will be £13,876 • New ISA changes will encourage 27% more over 50s to invest in ISAs

Over 50s give their views on new pensioner bonds and ISA changes

Following the confirmation by the chancellor last week of the interest rate to be earned on pensioner bonds when they launch in January, research by Saga Personal Finance has found that a third (34%) of over 65s say they plan to invest in the bonds when they launch in January*.

The research amongst over 1300 people aged over 65 shows that on average they plan to invest £13,876 in the new bonds.  The figures give some weight to the suggestions that these will fly off the shelves in the first few weeks after launch.

The Saga generations have confirmed that they will still need to find additional homes for the rest of their cash savings, some 70% say they have more than £20,000 saved so will also be looking for other reliable homes for the rest of their  savings.

The survey also asked whether the newly announced changes to ISAs – that they can be transferred to a spouse tax free following the death of the account holder- would make them more likely to invest in an ISA.  This change is warmly welcomed by more than a quarter (27%) of over 50s who say they are more likely to put their savings in an ISA following the announcement in this month’s Autumn statement.

Jeff Bromage, chief operating officer, Saga Personal Finance , commented: “Many over 50s rely on interest from their savings to boost their  income.  Our research shows that they clearly appreciate the effort the Government has made to make their retirement savings work as hard for them as possible and they intend to take them up on the offer.   However, the investment limits on pensioner bonds means that many people will also be looking for alternative reliable homes for their money - such as ISAs to create both income now and growth to help fund the retirement of their dreams.”

Ends

 Notes to editors

*Populus interviewed 2,149 UK adults aged 50 and over,(1324 of these were aged over 65) online between 12th and 18th December 2014.  Populus is a member of the British Polling Council and abides by its rules.

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