The retired generation faces potentially far steeper losses than the rest of the adult population.
Pension experts are urging older people to check the interest rate they currently have on their savings accounts after new research indicates that at least half of retirees could be missing out on hundreds of pounds each year. Pension Bee warns those missing out most are people with an interest rate of three per cent or less.
A retiree with a savings balance of £50,000 in an account paying two per cent interest would receive £1,000 in interest after one year. If their cash was held in an account with a five per cent rate, they would receive £2,500 in interest after a year - a difference of £1,500. However, for a working age adult with £5,000 in savings, the difference between the two per cent account and the five per cent account after a year would be £150 in lost interest .
This could suggest some pensioners may have already withdrawn most or all of their pension savings and placed them into a cash savings account. “When choosing accounts, hundreds of pounds of interest a year is at stake for retired people, who in general have built up more substantial savings over the years than younger workers. Older people need whatever wealth they have built up to last their whole retirement, potentially pay for some care and also to leave an inheritance.”
Danmark Seneste Nyt, Danmark Overskrifter
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