The plight of older savers is very real. They have been amongst the biggest loosers of the financial crash. Low interest rates may have helped those who are borrowing but for the thrifty elderly it has been a disaster. This issue has been debated at Sefton Council on several occasion and a number of ideas have been advanced. Chief amongst these has been the idea that the ISA allowance for shares etc should be reformed to allow pensioners to use all their allowance in safer savings products. Personally I would like to see something for pensioners on low incomes -maybe something around Credit Unions.
A report has been published by the Ageing and Older Peoples Group into older savers at the Groups AGM .
The report details the issues faced by older savers and shows the need for the Government to do more to help them to maximise their incomes and prepare for retirement.
Research by consumer group 'Which?' suggests that around £13bn each year is lost by UK savers due to the switching of interest rates on accounts they struggle to keep track of highlighting that 2 in 5 savings accounts and cash ISA's pay 0.1% interest or less. These figures demonstrate that the system at present isn't working for a large proportion of customers and more must be done to support older workers.
"Figures from consumer group Which? suggesting that £13billion is lost each year by UK savers indicates that the system at present simply isn't working for a large proportion of older people who are coming under ever increasing financial pressures.
"The report presents an excellent opportunity to enhance the support in place for older savers and ensure that help is available for them to maximise their incomes and prepare for retirement. This is an extremely important issue and it is only right that MPs should have the opportunity to debate the issue on the floor of the House."
Michelle Mitchell, Charity Director General of Age UK said,
"We support the All Party Group's call that the Government should do more to ensure that saving is made simpler so people can prepare more effectively for their retirement and maximise their income when they do eventually retire.
"This is an issue that really matters to older people as they come under ever increasing financial pressure. Loyalty should be rewarded rather than penalised by the financial services industry. A market which constantly chases new blood to the detriment of loyal savers does little to encourage a culture of saving"