New research has revealed that those aged over 50 have suffered the most during the recession in relation to saving for their retirement, with many of them using their lump sums to pay off debts.
According to findings from Scottish Widows, retirement dreams are being dashed because of the economic crisis, as 21 per cent of people over 50 cut their savings in the last year.
Furthermore, 41 per cent of those who received a lump sum were forced to put it towards reducing their mortgage and other debts. In contrast, the survey revealed that 19 per cent of people spent their money on themselves.
Head of pensions market development at the organisation Ian Naismith noted that preparation is key for those “planning on enjoying their golden years”.
Earlier this month, in another study commissioned by Age Concern and Help the Aged, the Institute for Financial Studies revealed that the internet could help indebted pensioners by providing them with the best information and deals.
By Sarah Adie