More than a quarter of over 50s (28%) are turning to their savings to meet the rising cost of living, finds research conducted into the finances of older Brits for Handelsbanken Wealth & Asset Management.
The research also found that one in 10 over 50s are investing less than before the cost-of-living crisis, with men twice as likely than women to do so.
More than a quarter (28%) have decided to go on fewer holidays, while everyday spending habits have also shifted. almost two thirds (64%) spending less on non-essential items, dropping to 62% among those in their sixties and around 50% of septuagenarians. Women were found to cut back more than men, with almost two thirds (63%) spending less on non-essentials compared to just over half over men (54%). 9% of those in their sixties also planned to delay their retirement in light of rising prices.
Christine Ross, Head of Private Office (North) and Client Director at Handelsbanken Wealth & Asset Management said:
“The squeezed middle aged are continuing to feel the strain of coping with the cost-of-living crisis. Many over 50s are facing steep costs for childcare, mortgages, and energy and feel they have no option but to change their saving and spending habits to cope with surging prices.
“Relying on savings to make ends meet is an obvious short-term measure, but as the months pass, it can have serious long-term consequences on your quality of life and retirement expectations. The best option is to seek professional financial planning advice to ensure you’re making the right decisions and are better positioned to mitigate the impact of today’s volatile financial climate.”
The study was conducted by independent research company, Opinium, on behalf of Handelsbanken among a nationally representative sample of 2,000 UK adults aged 18-plus between using an online methodology between 28 March 2023 – 31 March 2023
