Over 50s saving to supplement pensions
According to research by Saga, 39% of 50-54 year olds, 47% of 55-59 year olds and 44% of 60-64 year olds with a savings account are putting extra money away for life after work.
Falling annuity rates, the prospect of living far longer than previous generations and wanting to maintain a comfortable standard of living in retirement may be reasons why the over 50s are making the conscious effort to save extra money on top of their pensions.
Roger Ramsden, chief executive, Saga Services, said: “It’s good to hear the over 50s are being so responsible and saving for life after work.
“But even more could be done to help people save for retirement. For example, public policymakers could allow them to save their full ISA allowance in cash savings.
“This might even encourage those who currently aren’t putting money away into a savings nest egg to do so.”
Regionally, Londoners are the most conscientious in saving for their retirement (46%), followed by people from the West Midlands (40%) and South East (39%).
However, only 34% of people from the North East, Yorkshire and Humberside, Scotland and Wales are managing to put money away for life after work.
Saving for emergencies and holidays is also a top priority among this age group alongside saving for retirement.