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

The 20+ savings accounts that beat inflation

Inflation unexpectedly remaining flat in June was good news for savers who had been expecting the rate to rise...

Why you shouldn’t buy travel currency in the UK with your credit card

If you’re heading abroad this summer, exchanging money in the UK ahead of your travels is a sensible idea. But...

Bank of England: base rate could stay under 2% for 30 years

The Bank of England (BoE) has admitted that current forecasts show its base rate could remain under 2% for the...

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...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

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.

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

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