Savings drop for over-55s, says Aviva

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Aviva Logo Savings drop for over-55s, says Aviva

Older consumers saved less money in the second quarter of 2012 than during the first three months of the year, according to new research from Aviva.

The insurance, savings and investments firm discovered a considerable downturn in the monthly amount stored away by over-55s, with the figure dropping from £39.97 in Q1 to £31.05 in the three months to June 30th.

Aviva claimed consumers who began the year with the intention of increasing the amount they save each month may have found themselves unable to do so due to the mounting pressure of essential everyday expenses.

Of the demographic included in the study, over-75s saw the biggest drop in their monthly savings, from £57 in the first quarter to £37.71 in Q2.

This is despite the fact that this group typically saved the most per month, suggesting that many began each month by putting money away, before being forced to dip into this pot over the coming weeks.

Perhaps surprisingly, the fall in savings coincided with a rise in the typical monthly income for over-55s. Since the start of the year, monthly earnings for these consumers have risen by four per cent to £1,361.

Clive Bolton, retirement director at Aviva, said: “With the average amount saved each month falling … and the average debt held almost a third (31 per cent) higher than at this point last year, it is clear that there are some who are still struggling.

“The more people can do to secure their retirement income before they stop working, the more prepared they will be to meet the expenses they encounter during their later years.”

Earlier this week, uSwitch.com highlighted the financial strain faced by consumers who have been overcharged on their household bills.

The price comparison site found 57 per cent of Brits paid more than they were meant to on these bills at least once in 2011, with the average person losing out on £228 as a result of this issue.

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