You are here: Home - Retirement -

Over 50s spending power slashed 9% in four years – Saga

0
Written by:
06/09/2012
A "toxic combination" of low interest rates, spiralling inflation and the Bank of England's quantitative easing (QE) policy has hit over 50s spending power, Saga has said.
Over 50s spending power slashed  9% in four years – Saga

The 50s campaign group said 21 million older Britons have seen their spending power slashed 9% in real terms over the past four years as a direct result of the Bank of England’s policies, The Times reports.

Saga said QE had forced many older people to cut back on essentials, as they reassessed their financial situations in response to the rising cost of living.

It said this had in turn cost the economy £24.7bn – the equivalent to a 1.6% fall in GDP.

Ros Altmann, director-general of Saga, said: “This age group represents more than half of UK households and contributes nearly half of all domestic consumption, but the toxic combination of rock-bottom interest rates, spiralling inflation and QE money-printing has put a big squeeze on their incomes, forcing many to make cutbacks.”

Saga said over-50s have been affected more than other age groups as they failed to benefit from lower interest payments on mortgages and because QE reduced income from savings significantly.

Falling gilt yields have also hit pensioners and the hundreds of thousands of retirees buying annuities, it added.
 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Ex-cons reveal exactly what would stop them breaking into your car and home

With four in ten thefts committed by opportunists, ex-cons reveal what security devices and factors would stop...
Ex-cons reveal exactly what would stop them breaking into your car and home

Why selling on eBay just got more expensive

Thousands of people selling goods on eBay will see the cost of using the site increase. Here are the best alte...
Why selling on eBay just got more expensive

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.
Tesco expected to post significant write-offs

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2203410-hargreaves-peter-cutout
Hargreaves pans ‘idiot’ Clegg over rich tax

Peter Hargreaves has criticised ministers for failing to shore up the economy, and omitting to "look in their own backyard"...

Close