Savings accounts appear to be increasingly in use by people approaching retirement age.
The number of people aged 55 and above who are saving money each month has risen from 57 per cent in February to 59 per cent in May. Compiled by Aviva, the figures also revealed that most retirees are saving more as well.
In February, individuals used savings accounts to put away a median of £27.23. But three months’ later this had risen to £32.94 as people become increasingly keen on establishing their financial security.
Clive Bolton, ‘at retirement’ director at Aviva, commented, “With changes to pensions and the threat of unemployment causing concern among the over-55s, it is encouraging to see a picture emerging of a group showing determination to tackle this by paying down outstanding debts and boosting regular savings.”
Mr Bolton added that people are adapting their spending habits in the face of the rising cost of living. As a result, they are learning to prioritise their income when approaching retirement, “but taking control is helping to reduce their fears about a slow economic recovery and its impact on their finances in retirement”.
Indeed, the percentage of over-55s who are worried about the rising cost of living over the next six months has fallen from 83 per cent in February to 73 per cent in May.
