Sep
2024
A third of near-retirees could be missing out on crucial savings by not switching accounts
DIY Investor
16 September 2024
The missing piece of the puzzle: A third of near-retirees could be missing out on crucial savings by not switching accounts
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33% of pre-retirees have never switched savings accounts
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21% have never checked the interest on their accounts
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Yet 58% say rates are important when choosing a savings account
Pre-retirees (55-68 year olds) are missing out on crucial interest on their savings by not switching accounts, according to new research from Shawbrook. A third (33%) have never switched accounts, and more than a quarter (28%) have not opened a new savings account.
On average, pre-retirees have not switched or opened a new savings account within the last year, and a quarter (25%) have not opted for a new one in the last 18 months. Almost the same number (27%) confirmed they have not opened an additional account during that time either.
The research also found that near-retirees have not been checking the rate they’re currently earning on their savings – on average pre-retirees have not checked in the last five months. However, one in five (21%) admit they have never checked the interest on their accounts, meaning many could be stuck on lower less competitive rates.
Despite this, when it comes to choosing a savings account, more than half (58%) stated the rates offered would be most important to them. And 50% confirmed that rates have been and would be key when choosing a savings provider.
Adam Thrower, Head of Savings at Shawbrook, comments: “A well-chosen savings account can provide both supplemental income and peace of mind during retirement. Whether you’re saving for a holiday, covering daily expenses, or simply building a financial cushion, many pre-retirees risk missing a key opportunity to enhance their retirement plan. Alarmingly, one in four individuals never check their savings rate, potentially losing out on hundreds of pounds in interest.
With the Bank of England cutting the base rate to 5% in August, savings rates are likely to decline. Pre-retirees should act swiftly to ensure their savings strategy isn’t the missing piece in their retirement puzzle. The window to lock in high long-term fixed rates may be closing, and maximizing this opportunity could be crucial for those nearing retirement.”
The research was conducted by Censuswide with 2,011 UK consumers aged 55-68 between 27/06/24-3/07/24. Censuswide abide by and employ members of
the Market Research Society which is based on the ESOMAR principles and are members of The British Polling Council.
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