Money

Retirement

One in three Brits worry they will not have enough money to pay future household bills

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Research on behalf of Saga Savings* has revealed that nearly a third of British people believe they may not have enough money over the next five years to cover the cost of domestic bills

Pressure to save for rainy days has become more acute, with worries about increased day to day bills and redundancy fears causing many Britons to think hard about their savings.

Some of the younger generation are also now tightening their purse strings and spending less in order to increase their savings, with one in five under 35s now saving more than before.

However, while the majority of people are currently spending less because their disposable income has diminished, one in eight are burying their heads in the sand and failing to plan their financial futures. Furthermore, a third of Britons are not taking heed of their own financial concerns and haven't changed either spending or saving patterns since the onset of the credit crunch.

Nearly two in five over 50s say they haven't revised their spending habits since the start of the economic downturn. But with more than a third of the over 50s having an ongoing savings pot, they are consequently more likely to be well-placed to weather the storm.

The research also revealed that, despite the downturn, people are tending not to alter their portfolio of investments, in terms of the proportion held in cash, shares and property. Forty-four per cent said they had not changed the way they saved, with more than half of over 50s sticking to their original investment plans to safeguard their savings in the current climate.

Saga Savings has continued to provide the over 50s with market-leading savings accounts, and has seen investments more than double over the past 12 months to 3.5 billion as people search for good rates from a brand they trust.

Andrew Goodsell, Chief Executive, Saga Group, concluded: "People over 50 have traditionally been prudent savers and are feeling the effect of base rate cuts. However, they are better placed than most and are looking for brands they can trust with their money."

* Analysis carried out by Opinium Research in an online poll of 2,129 British adults between February 10-13, 2009.

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