Over 50s batten down the hatches

Downturn forces Brits to make sacrifices to shore up savings and fund a comfortable retirement

The current economic climate is forcing people with plans for early retirement to drastically downscale their ambitions. Many savers say they need to save more to maintain their current lifestyle in retirement, or can't stop saving yet because their 'pot' just isn't big enough.

While savers of all ages are affected by the current climate the challenge for the over 50s is that many anticipated giving up work by this stage of their lives. More than eight in ten say they need to save more to maintain their current lifestyle and nearly two thirds haven't reached a point where they've saved enough to quit work, according to the Savings Outlook Report from Alliance & Leicester.

Hetal Parmar, Manager for Savings at Alliance & Leicester, said: "Aside from the confident few, 'Silver Savers' are concerned about their retirement, given the size of their nest egg and the effects of the current economic climate. A significant number of people say that they have yet to accumulate a comfortable financial cushion for their retirement and are living prudently now so that they can afford to maintain their standard of living later on."

Nearly half express concern that the changing economic climate might compromise the enjoyment of their retirement. Accordingly, they are making sacrifices to guarantee that it is adequate or enjoyable. 58% of over 50s surveyed are not harbouring any ideas of an extravagant retirement lifestyle, but are instead seeking to balance living well now with providing for a secure future.

The report also highlights that many people in or approaching retirement regret financial decisions they made in the past, with half regretting not giving enough thought to their finances in years gone by. However, it's not all doom and gloom, as nearly 40% say they have made generally good financial decisions and are looking forward to a secure financial future.

For more information visit: www.alliance-leicester.co.uk <http://www.alliance-leicester.co.uk>