M&S Money reveals half of over 45s not saving for retirement
M&S Money has revealed that almost half (47%) over-45s are not saving for their retirement, and furthermore, those who are saving are not taking advantage of the tax breaks offered by using ISAs.
As the end of the tax year approaches, M&S Money surveyed more than 1,000 people over the age of 45 to find out how they are planning to save for their retirement.
The findings show that of those who are planning for retirement, the majority are not taking advantage of tax-free ISAs to help boost their retirement savings. Two thirds (66%) of over 45s are not saving into Cash ISAs while more than eight in ten (84%) are not saving into a Stocks & Shares ISA savings account.
For those who do save into ISAs, over half (52%) admit they have not saved the full tax allowance this year, while just 30% of people plan to save the full tax allowance of £10,200 by the April 5th deadline.
The total average amount held in Cash ISAs for those who have saved is £18,334 - almost £21,000 less than the total possible allowance of £39,300 since they were launched in 1999. The average amount this age group has saved in their Stocks and Shares ISAs is slightly higher at £19,077; however this is £68,500 less than the maximum £87,600 they could have saved to date.
Based on average Cash ISA rates over the past eleven years and using the full Cash ISA allowance each year, savers could have earned an additional £7,931 in interest.
Colin Kersley, Chief Executive of M&S Money commented: "The news agenda has been dominated with proposed changes to pensions over the past few months, and people approaching retirement need to ensure that they have sufficient savings to provide an adequate income for themselves.
“It is of utmost importance that people of all ages are saving and planning for retirement, but even more so for those who are approaching this stage in life. Taking advantage of the tax breaks of ISAs is one way that savers can help to boost their retirement savings.”
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Notes to Editors
All figures, unless otherwise stated, are from YouGov Plc. The Online survey was carried out between the 25th and 28th February for M&S Money and questioned 1,122 adults aged 45+. The figures have been weighted and are representative of all GB adults (aged 45+).
*Interest Rate source: Bank of England Average Cash ISA rates
About M&S Money:
M&S Money (the trading name of Marks & Spencer Financial Services) was founded in 1985 as the financial services division of Marks and Spencer Group plc.
The company is a top-ten credit card provider and the second-largest travel money retailer in the UK. M&S Money also offers a range of insurance cover, including home insurance and car insurance, as well as loans, savings and investment products, including fixed rate savings and various cash isa savings rates.
In November 2004, Marks & Spencer sold M&S Money to HSBC. HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 8,000 offices in 87 countries and territories in Europe, the Asia-Pacific region, North America, Latin America and the Middle East. With assets of US$2,418 billion at 30 June 2010, HSBC is one of the world’s largest banking and financial services organisations. HSBC is marketed worldwide as ’the world’s local bank’.
M&S Money has an executive committee comprising an equal number of representatives from HSBC and Marks & Spencer.
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