Pensioners have £33,000 in savings pot

In contrast to news this week that the average Briton has £33,000 worth of debt, new research reveals that people over the age of 55 have an average savings ‘pot’ of just over that amount - £33,091 and the over 70s are best off.

Findings from the leading savings provider Birmingham Midshires’ Life 2 campaign, which explores the issues affecting the over 55s, reveal that, far from older pensioners seeing their savings dwindle long before their energy does, pensioners have sufficient savings to enable them to enjoy life to the full well into their 70s.

One in two (51%) over 55s questioned said they were able to afford the lifestyle they wanted; with 40 per cent claiming they can now enjoy the money they have saved over the long term. A further one in three (33%) now go on more holidays than they used to.

The survey found that people significantly begin to build up their savings pot from around the age of 55. During the first few years of retirement, savings generally dip but then bounce back to higher levels than before when people reach the age of 71 and above.

Age range - Average amount of savings

18 – 24 £5,525
25 – 34 £8,632
35 – 49 £14,113
50 – 55 £21,542
56 – 60 £30,528
61 – 65 £38,714
66 – 70 £35,857
Over 70 £39,776

Jason Robinson, director of savings operations at Birmingham Midshires said: “Our findings indicate that people in their 70s and 80s hold a large proportion of the country’s savings wealth.”

Pensioners on the Rich List

The trend for older people to have the greatest assets is born out by the Sunday Times Rich List with 41 of the top 50 entrants over the age of 50.

Topping the list for the past three years, steel magnate Lakshmi Mittal is now 56. The Duke of Westminster, 55, is third in the list, just behind 40 year old Roman Abramovich – the youngest person in the top ten.

At 71 and 67, the Hinduja brothers are still extremely active in business, last year paying £56 million for a property once owned by The Queen. The brothers are fourth in the Rich List ahead of 61 year old art collector David Khalili.

Robinson continues: “Our research reveals that older people have the means to continue living their lives to the full. It is also encouraging to see that those in the younger age groups are already building savings for the future.”

”While the majority of us may not make it on to the Sunday Times Rich List when we reach the age of 50 and beyond, it’s important to have a suitable nest egg in place.”