'Make do and mend’ or make money stretch further?

The predicted fall in inflation will come as welcome news to the country's over 50s, only 2% of whom feel they have not yet suffered from steep rises in the cost of living. Despite the fact most of the over 50s make up the ‘Air Raid' or ‘Baby Boom' generations and will be well used to the ‘make do and mend' mantra, money could still be tight even though inflation is set to fall.

Indeed, making money stretch further will be just as important as a ‘make do and mend' approach. Alliance & Leicester Current Accounts is advising the over 50s about the importance of choosing a bank account which gives more for your money.

Research from Alliance & Leicester reveals that despite the fact that 98% of the over 50s claim to have been affected by the rise in the cost of living, half of them (50%) have done nothing to improve the overall state of their finances. What's more, only one in 14 (7%) has actually changed their current account provider in a bid to improve their finances.

The Premier 50 account offers the over 50s one way to make their money stretch further, providing them with a high interest paying current account with added benefits. For the over 50s, health concerns become more important, and travel insurance is more difficult and costly to obtain, so Alliance & Leicester developed an account which includes annual worldwide travel insurance and £750 towards out-patient diagnostic testing providing over £1,000 worth of benefits for just £10 a month. What's more, in contrast to many packaged accounts, Premier 50 also offers a best-buy rate of credit interest of 8.50% AER.

Emma Walkley, Current Account Manager at Alliance & Leicester said: "At the moment, it really is a case of ‘every penny counts' for the over 50s, and this generation more than any will be tempted to return to the ‘make do and mend' lifestyle in which they were been brought up. However, most of the regular outgoings that have risen so much are now set to fall, but they still need to look at how to save costs, and maximise their income, wherever they can. For many, this could be as simple as choosing a bank account that works harder for them, giving them better value for money in their retirement."

The research reveals the extent to which the over 50s have been hit by each different aspect of the rising cost of living.

The table below lists the top 10 factors which have impacted on over 50s' disposable incomes

1 Domestic fuels e.g. gas and electricity (77%)
2 Vehicle fuel (70%)
3 Basic foods e.g. bread, milk etc. (69%)
4 Council Tax (46%)
5 General cost of motoring (39%)
6 Luxury / treat foods (21%)
7 Other domestic bills (18%)
8 Eating out (16%)
9 Mortgage / rental payments (13%)
10 Holidays (11%)

Emma Walkley continued: "Alliance & Leicester's Premier 50 account offers over 50s the best credit interest rate on the market of 8.50% AER, and benefits including annual travel insurance and £750 towards out-patient diagnostic testing, worth over £1000, giving peace of mind, as well as a good return.

"For many people who don't have private medical insurance including those who no longer receive it free with their job, the quick access to medical advice and diagnosis for health concerns are benefits well worth the £10 a month alone. The monthly fee certainly pays for itself, in particular with the benefit of annual worldwide travel insurance, and provides both new and existing customers with great incentives to make the change and switch to a better deal."

For more information, visit alliance-leicester.co.uk