Over 55s fail to make plans for retirement

Four and a half million people aged over 55 have not started making plans for retirement and a further two million have not thought about or considered the issue, according to research from Abbey Savings.

In the 45-54 age bracket, a staggering 4.8 million people, nearly two thirds of this age group in Britain, have not started making plans for retirement, with a further 1.8 million not considering the issue.

Abbey, which has launched a 50+ Savings product to help promote savings in the older generation, found that 1.5 million people over 55 believe their homes would be the only source of investment for their retirement years.

Most worryingly, one million people over the age of 55 and 740,000 of 45-54 year olds believe that they will need to continue working through their retirement because they will not have enough savings.

Reza Attar-Zadeh, Head of Savings at Abbey, said: “This research shows the potential retirement time bomb that the 50+ generation are facing. We have introduced the 50+ Saver account, offering highly competitive rates, to further encourage a culture of savings at this crucial time for those approaching retirement.”

Abbey’s 50+ Saver account is designed exclusively for people aged 50 or over. It offers up to 5.80 per cent interest, and guarantees to move in line with any changes in the Bank of England base rate until July 2008.

The Abbey 50+ Saver has been designed following consultation with Abbey customers and offers: -

Up to 5.80 per cent AER, including bonus of 0.50 per cent until 1 July 2008

Interest rate (AER) guaranteed to move in line with any changes in the Bank of England Base Rate until 1 July 2008

A minimum opening balance of £1, maximum deposit of £2m

Account is accessible by telephone, post, internet and cash machine

Interest can be credited monthly to a suitable Abbey account