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Nearly half of 50-64 year olds are putting extra into their savings accounts for retirement
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Over 50s also saving for rainy days and sunny days
With regular warnings of poverty in old age, nearly half of 50-64 year olds are building a savings nest egg to supplement their pensions in retirement. 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.
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.
The research also reveals that in addition to stashing money away for retirement, people prioritise saving for emergencies and holidays. Salting money away for a rainy day is considered just as important as saving for retirement with more than half of 50-64 year olds putting money away "just in case". And the over 50s are also keen to save money for "sunny days" too with 40% of 50-54 year olds, 41% of 55-59 year olds and 50% of 60-64 year olds saving up for their holidays.
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."
Saga offers a range of telephone, internet and postal accounts with a choice of variable or fixed rates. Please visit www.saga.co.uk/money for more information about Saga's financial products.
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