More than 25% of over 50s forced to dip into savings

by | Apr 27, 2023

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Retirement

Handelsbanken Wealth & Asset Management research shows the sacrifices many over fifties are having to make due to the cost-of living-crisis

More than a quarter (28%) of over 50s are now turning to their savings pot to tide them over due to the cost-of-living crisis, new research* conducted amongst the age group on behalf of Handelsbanken Wealth & Asset Management shows.

The research revealed that one in 10 over 50s are investing less than before the cost-of-living crisis, with men twice as likely to do so compared to women (14% vs 7%). Meanwhile, more than a quarter (28%) have decided to go on fewer holidays.

It is not just the bigger financial decisions and purchases people are cutting back on. Everyday spending habits are shifting as well, with more than half of over 50s (59%) spending less on ‘non-essential items’ as a direct result of the cost-of-living crisis.

 
 

Fifty-somethings are feeling the impact the most, with almost two thirds (64%) spending less on non-essential items, dropping to 62% among those in their sixties and around 50% of septuagenarians. Women were found to cut back more than men, with almost two thirds (63%) spending less on non-essentials compared to just over half over men (54%).

As a result of the financial pressure to stay afloat, almost one in 10 (9%) of those in their sixties are now planning to delay their retirement indefinitely.

Christine Ross, Head of Private Office (North) and Client Director at Handelsbanken Wealth & Asset Management said: “The squeezed middle aged are continuing to feel the strain of coping with the cost-of-living crisis.  Many over 50s are facing steep costs for childcare, mortgages, and energy and feel they have no option but to change their saving and spending habits to cope with surging prices. 

 
 

“Relying on savings to make ends meet is an obvious short-term measure, but as the months pass, it can have serious long-term consequences on your quality of life and retirement expectations. The best option is to seek professional financial planning advice to ensure you’re making the right decisions and are better positioned to mitigate the impact of today’s volatile financial climate.”

Regionally, over 50s in Yorkshire and the Humber are changing their habits the most due to the cost-of-living crisis, with two thirds saying they’re spending less on non-essential items and 30% having to dip into their savings. In the East Midlands, just a quarter (25%) of over 50s feel they aren’t affected by the cost-of-living crisis.

Over 50s in the North East are having to make the least changes to their lifestyle, with less than half (49%) spending less on non-essentials, less than 20 percent (18%) cutting into their savings, and more than a third (37%) not changing their habits due the cost-of-living crisis at all.

 
 

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