The majority of people over 45 who have not yet retired are currently relying on bank and building s...
The majority of people over 45 who have not yet retired are currently relying on bank and building society savings accounts to top up income in retirement, despite interest rates languishing at an all-time low, according to research revealed by Britannic Asset Management.
Despite the Bank of England's recent cut to base rates to 3.75%, bringing repo rate to a level unseen since 1955, over 5 million, or 43.5%, pre-retireds – people over 45 who have not yet retired – have saved their extra pension money in savings accounts.
The other 18% of pre-retireds have savings tied up in equities through unit trusts or ISAs, while only 3.4% of people have invested in corporate bond funds to top up their future pensions.
It is perhaps no wonder then, only one in ten of those pre-retired people surveyed said they were satisfied with their provisions for retirement.
With those who were planning to start or continue to save money to boost retirement income, only 9.3% said they would consider an equity unit trust or ISA, while just 2.7% said they would favour a corporate bond unit trust or ISA.
In comparison, 15.8% would consider putting more money into a building society or bank account, while 9.7% plan to move to a smaller property to release equity.
The research was carried out by Marketminder in December 2002 on behalf of Britannic.
Good governance v resources
UCITS rules need changing
Old age dependency ratio ‘outdated’
Scope for change post-Brexit
To tackle liquidity issues