Pensioners face uphill climb for insurance and banking

24 October 2007
Rather than being free to enjoy the benefits of a happy retirement, pensioners in the UK are increasingly facing difficulties in both the banking and insurance sectors.

It has come to light that the Northern Rock Silver Savings range for those aged 50 or over may be forced to renege on its promise to match interest rates with the base rate – currently 5.75 per cent – if it is acquired by another company.

The guarantee is set until the end of January 2010, but the struggling Newcastle-based lender has admitted that the arrangement will have to be discussed with any potential buyer.

Furthermore, the older generation is finding it difficult to obtain travel and car insurance. Following its report at the beginning of the month which related how people are ‘sleep-walking into retirement’, Defaqto has revealed how difficult and expensive it can be for older people to insure themselves.

Its research shows that the age barrier on travel insurance policies is normally set at around 64 years of age, and that 90 per cent of single-trip deals are not available to those who are over the specified limit.

Defaqto also states that people aged over 75 will struggle to find either motor insurance providers or private medical insurance.

This follows figures from the Office for National Statistics (ONS), which show that there will be more people of retirement age in the UK than children this year for the first time.

© Fair Investment Company Ltd

Find out more about travel insurance for pensioners and car insurance for over 50s