Pension and retirement saving usually takes place years before a person chooses to leave the workforce. While some may opt for traditional pension saving, others have chosen to put money aside into savings accounts. However, the choices Britons do make are likely to have an effect on them later down the line.
Over a third of savers over the age of 55 are currently putting away savings into current accounts.
This means many are failing to take advantage of accounts with more favourable interest rates to make their money grow.
While over 30 percent of savers have said they used lockdown to put away more money than usual, the location of savings is always important.
In terms of retirement, one in 10 over 55s now believe they will never be able to fully retire, with an addition nine percent stating they would delay retirement by one to five years.
And of those whose plans for retirement have changed, almost two in five stated due to economic uncertainty brought about by the pandemic that they would continue to work longer to ensure they had enough for retirement.
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The survey asked 2,018 over 55s about their money habits during lockdown, alongside 329 ‘high net worth’ individuals throughout the UK – those with more than £100,000 in investable assets.
Rachel Springall, personal finance expert at Moneyfacts commented on the financial difficulties many are currently facing.
She said: “Due to prevalent economic uncertainty, consumers appear to be favouring quick access to their money, perhaps more vital than securing the highest possible rate of interest.
“However, it is important for savers to shop around to acquire a deal that provides not just flexibility, but also a competitive rate.
“If savers have their cash in their current account, or even an easy access account with their high street bank, it may not be earning a very good rate of interest.
“During these times it’s worthwhile for savers to secure a good savings deal to make their money work harder for them.”
Many people said not taking any risks with their money during the present time was a main preoccupation for them.
And the impact of COVID-19 is clearly one many people will be forced to navigate in the long-term.
Suzanne Lewsley, chief deposits officer at Ford Money also commented on the findings.
She said: “With high street bank interest rates at almost rock bottom, we’re urging savers to think carefully about where they save their extra cash to make sure it’s growing at the most competitive rates.
“There are many savers already heeding this advice as our own data reveals there was a 305 percent increase in the number of new customers in 2020 versus 2019 – but sadly there are still many savers not making the most of better interest rates.”
The new research came as the state pension age underwent a momentous change yesterday.
While the age at which people can receive their sum from the government has steadily risen, a widespread alteration took place today.
Men and women born between October 6, 1954 and April 5, 1960 will now hit state pension age on their 66th birthday.
However, the impact on Britons is likely to be palpable as a result.
Ms Springall concluded: “There has been significant damage to consumer confidence with a third of over 55s concerned about the impacts that a second wave could have on their finances and their plans to retire.
“This threat coupled with the state pension rising this week, means many people will be working longer to make sure they’re able to have the retirement they had planned.
“Now more than ever it’s crucial for us all to consider different options, to become savvier when it comes to saving, and ultimately make the most of our hard-earned cash.”