This article is for general guidance only and is not financial or professional advice. Any links are for your own information, and do not constitute any form of recommendation by Saga. You should not solely rely on this information to make any decisions, and consider seeking independent professional advice. All figures and information in this article are correct at the time of publishing, but laws, entitlements, tax treatments and allowances may change in the future.
Rachel Reeves, the Chancellor of the Exchequer, has announced a package of family-friendly measures aimed at families on stretched finances looking for shelter from the economic fall-out of the ongoing Middle East conflict.
As a means of tackling the cost-of-living crisis, the gesture will doubtless be welcomed by those with children looking to visit theme parks, fairs, and zoos this summer.
But what about the over-50s and their financial needs? From seeking out superior savings rates to sorting out holiday spending plans, summer is also the perfect time of year to give your finances a seasonal onceover.
What’s on this page?
Now’s the perfect time to check your savings are working as hard as they could be.
The Bank of England base rate currently stands at 3.75%. This compares with a figure of 4.25% in June 2025. The drop might not sound like much, but it’s important. Fixed-rate deals to one side, banks and other savings providers use the base rate to guide the interest they pay customers on products such as easy-access accounts.
Average interest rates on cash savings have dropped over the past 12 months. For example, the average interest rate for easy-access savings accounts was 2.47% in May 2026 compared to 2.78% a year ago, according to data from Moneyfacts.
The next interest rate decision is announced on 18 June 2026. But despite having been on a downwards trajectory since August 2024, analysts are uncertain whether rates will remain the same this time or move either up or down.
That means now’s a good time to check your savings are working as hard as they could be.
Where possible, Rachel Springall, a savings specialist at Moneyfacts, recommends spreading cash across several accounts, such as fixed-term, easy-access or notice accounts, to get the best returns.
“It doesn’t take too much time to compare rates. Savers can use online comparison sites, or refer to newspaper best buy tables. They can also pop into a bank or building society to find out the current savings rates within a particular range,” she adds.
As well as reviewing your savings, for those with sufficient funds it’s also worth asking yourself whether you’re holding too much of your wealth in cash.
About seven million adults hold over £10,000 in cash savings and could potentially be missing out on the benefits of investing, according to figures from the City watchdog, more formally referred to as the Financial Conduct Authority.
With the help of ‘Savvy the Squirrel’, the government recently launched a campaign to encourage more people to invest in the stock market.
It’s possible that retired people could be holding more in cash than they need. Although a cash buffer is important, money that’s not needed for at least five years could have more potential to grow if invested.
That said, investing comes with risks and is most definitely not for everyone. Before taking the plunge with any form of stock market-based investment, would-be investors should ask what they’re aiming to achieve, whether they are happy with the risks, and if they should go it alone or take advice.
Travellers face extra strains on their finances this summer with the introduction of new European Union rules having a potential knock-on for the way an overseas trip is planned to countries in this bloc. To keep a lid on expenses, the trick is to be prepared.
The EU Entry/Exit system is a new electronic system that replaces the physical stamping of passports when you go through passport control when arriving in and departing from an EU destination. From April this year, this means having a photo taken of your face, as well as your fingerprints scanned, in addition to showing your passport in the usual way.
These new systems mean you’ll likely need to build in more time for passing through passport control, which could mean leaving longer between connecting flights or trains, or booking a hotel the night before to get to the airport in plenty of time.
With the added pressure and potential further costs, shop around to make sure you’re getting the best value you can on hotels, travel, and rental arrangements such as car hire.
Compare airport parking early, check whether a package holiday offers better protection and value than booking everything separately, and watch out for extras such as baggage fees, seat reservations, resort taxes, and car hire excess charges.
When spending money abroad, see if you can save money by using a debit or credit card that charges no foreign transaction fees. There are more tips on our guide to spending money abroad.
Summer is the season of couples saying “I do”. It’s also a popular time to hold weddings and civil partnerships. If you are feeling generous towards a family member who is walking down the aisle, it’s also possible to take advantage of a specific inheritance tax allowance geared towards nuptials.
That’s because grandparents can each give £2,500 to a grandchild, or great-grandchild, ahead of their wedding. In a similar scenario, parents can each give £5,000 to a child.
The wedding gift is separate to the regular £3,000 annual gifting allowance, known as the “annual exemption”. So, a couple could give £5,000 to a grandchild towards their wedding, and a further £3,000, giving away a total of £8,000.
For your records, always remember to keep a note of any sizeable cash gifts that your make.
31 July is a key date in the tax calendar, especially if you take income from dividends, are self-employed, or earn money from renting out property through buy-to-let.
The term ‘payment on account’ crops up regularly on tax return paperwork and are, essentially, partial advance payments on the coming year’s tax bill and liabilities. Online self-assessment returns and tax bills, including the first payment on account, should be filed and paid by 31 January each year. Meanwhile, 31 July is the deadline for the second instalment.
This means the start of summer is a good time to check whether you’ll need to make a payment on account. Stefanie Tremain, a partner at accountancy firm Blick Rothenberg, says people in their fifties are more likely to fall within the self-assessment regime due to a shift in their income profile.
Tremain explains: “Individuals may have retired, or have moved to consultancy work, or be more reliant on passive income from rental property and/or investments. These changes can mean you’re more likely to have to make payments on account, as opposed to those for whom salary makes up the bulk of their income.”
Summer is also a good time to tell HMRC about any changes to your financial circumstances which could reduce future payments. For example, if you’re expecting to pay less tax going forward thanks to a change in your employment situation over the previous tax year.
Tremain adds that if you know your income will be lower in the future, then it’s possible to claim a reduction on your payment on account which can help with cashflow. Too much of a reduction could trigger an interest charge, however.
Even if you’re currently basking in the summer sun, bear in mind that energy bills this autumn are expected to be significantly higher than last year thanks to the Middle East conflict and its impact on fuel costs.
From this July, the energy regulator Ofgem has confirmed that its quarterly price cap will rise to £1,862, This is the average energy bill for a typical British household and represents a 13% hike, or £221 rise, compared with the current April-to-June 2026 figure of £1,641.
The price cap sets the maximum amount that energy suppliers are allowed to charge per kWh of gas and electricity, known as the unit rate, each year. The cap, which is adjusted every three months, also incorporates a maximum daily standing charge and reflects movements in the wholesale price of energy.
Dr Craig Lowrey, principal consultant at analysts Cornwall Insight, said that while a summer rise will be painful for households, bigger concerns will arise in October 2026 when household demand traditionally picks up. “If the cap stays at a similar level as July, that is when the Government will need to think seriously about targeted support for the most vulnerable.”
Get your money moving with our great rate.
In partnership with NatWest. Interest paid monthly. Available to UK residents only, designed for people over 50.
One simple form could unlock a £1,008 lump sum and lower your tax bill for years to come. Check if you qualify.
Learn everything you need to know to fight back and keep your bill down.
