Over-50s struggling to save for rainy day
A survey by Saga found that 20% of men and 19% of women over 50 are currently saving nothing and one in ten of 50-59 year olds don’t even have a savings account.
Saga says that this is a worrying number of older people who are failing to put away money due to factors like rising unemployment levels, falling interest rates, or high inflation, often leaving these over-50s struggling to make ends meet.
Roger Ramsden, chief executive from Saga Services, said: “Some of the regional stereotypes about areas of the country where people are more cautious with their money have been supported, but others have been contradicted by our survey.
“It is concerning that almost one fifth of over 50s don’t save and one in ten of 50-59 year olds don’t have a savings account.
“This is worrying considering that many of those surveyed will be approaching retirement and, if these people are not saving in addition to their pensions, they may find themselves struggling to make ends meet when they do eventually retire.”
The tough economic climate and ever-increasing pressures on household budgets may also be affecting the amount over-50s are able to put away in their savings accounts.
Of those over 50s who do save, the same survey revealed that men save more money than women. 29% of men put away £250 or more each month compared to 19% of women.
However, this disparity between the genders could be due to men generally earning more than women and consequently being able to save more.
The Scots proved their reputation for being careful with money, with 85% saving each month, however the same couldn’t be said of another region famed for their frugality – almost a quarter of people from Yorkshire and Humberside (23%) don’t save.
Londoners save the most money each month, with over a quarter of Londoners (27%) putting away £250 a month, followed very closely by people from the South East, North East, Scotland and Wales (all 26%).