Adults aged 50 and over are aspiring to save £80,000 for their loved ones, yet a fifth (22%) don’t currently save and a further tenth (8%) don’t even have a savings account, according to a new Co-op Insurance study conducted among 2000 UK adults aged 50 and over.
Of those adults aged 50 and over who have saved, almost a tenth (9%) say they have less than £1,000 put aside, a fifth have less than £5,000 saved and a quarter have less than £10,000 saved.
For those who do save, it’s evident that despite wanting to leave savings for loved ones, the temptation of dipping into savings accounts is very common among adults aged 50 and over.
Over four fifths have dipped into their savings at some point and in the last month alone, over a quarter (27%) have accessed their savings.
Over a fifth of those who have used money from their savings did so to go on holiday, a fifth (20%) used the money for home refurbishments and over a tenth (13%) bought a car.
Furthermore, 40% of adults aged 50 and over who have a savings account said they had to stop saving for an extended period of time, rising to almost three fifths for adults aged 50-54.
When asked why this was, over two fifths of those who had to stop putting money into their savings account for an extended period of time (44%) said that other outgoings took priority, over a quarter (28%) had unexpected bills to pay and almost a fifth (19%) said someone in their family needed financial help, so they gave money to them instead.
Almost a fifth paid for a holiday, 15% said paying for Christmas took priority and over 14% paid to get their car fixed instead.
The research comes as Co-op Insurance launches it’s over 50s life insurance plan, which allows customers to leave a lump sum up to £10,000 for their loved ones when they pass away.
Charles Offord, Managing Director at Co-op Insurance said: “We know that so many people hope to leave lump sums to their loved ones when they’re gone, but in reality, that’s not always possible. The majority of people with savings do at times dip into them in order to cover other outgoings and life events.”
“We see our new Over 50’s plan as a means to which people can affordably and flexibly save nest eggs to leave to their loved ones when they pass away.”
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