Abbey finds finances top concern for over 50s

31 January 2007
People approaching retirement or on the cusp of drawing their pension for the first time are more concerned about their financial situation than older pensioners, research from Abbey has showed.

When asked what they considered to be the greatest threat to their way of life, 18 per cent of 50 to 65-year-olds were most anxious about the state of their finances.

Over 65s, however, were most concerned about their health, with 27 per cent citing this as their primary concern while only 12 per cent put their finances first.

At the same time, the 50 to 65-year-olds are using their finances much more actively, spending more on home improvements and travel than any other generation surveyed.

"The 50 plus market … hold 60 per cent of all savings and are responsible for over 40 per cent of all consumer demand," commented Abbey's head of savings Reza Attar-Zadeh.

Their financial caution could reflect a healthier approach to money management than that of the younger generation, after Yorkshire Bank found earlier this week that first-time buyers were preparing to take major financial risks to buy homes, with only two in five hesitating to take on a mortgage five times their income.

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