Over 50s still saving into retirement

More than eight out of ten (83%) people over 50 say they are still saving for their retirement, according to The Savings Outlook Report from Alliance & Leicester Savings.

Financial security in later life is a real priority for this group and 42% said they are making, or have made, sacrifices to help ensure they enjoy a comfortable retirement. Almost half (48%) say they will have to save for longer because of increased life expectancy. Furthermore, just under half (48%) are concerned that the changing economic climate will have a negative impact on their enjoyment of retirement.

The Alliance & Leicester Savings report found that the majority of people (58%) over 50 do not harbour any illusions of an extravagant retirement lifestyle, but are instead seeking to balance living well now with providing for a secure future.

There is a mixed picture of how those approaching, or already in, retirement feel about the financial decisions they have made in the past. Almost half of these ‘Silver Savers' (48%) regret not giving enough thought to their finances in years gone by. Only a quarter (26%) of those surveyed say they live for today, spending now, as and when they choose, while the majority are holding back and striving to protect their retirement savings pot.

Hetal Parmar, Manager for Savings at Alliance & Leicester, said: "Aside from the confident few, ‘Silver Savers' are concerned about their retirement nest egg and the effects of the current economic climate. A significant number say that they have yet to accumulate a comfortable financial cushion for their retirement and are living prudently now so that they can afford to maintain their standard of living later on."

In order for people to maintain their quality of life on a lower income, savings can help fill this gap. A third (34%) plan to use savings to fund holidays during retirement and another fifth (18%) intend to upgrade their car. A generous one in ten (13%), want to build an inheritance pot for their family or fund children or grandchildren's futures (12%).

Hetal Parmar continues: "We all look forward to a comfortable lifestyle during retirement. Whether it's paying for holidays, updating the car or covering the cost of private healthcare, the increasing demands on a pension pot means that it's crucial to back it up with sufficient savings. The research is clear: saving today really does provide security for tomorrow."