A survey from Safe Home Income Plans has revealed that pensioners are suffering at the hands of the credit crunch. The extremely cautious approach adopted by lenders in the wake of the sub-prime crisis has forced a series of interest rate cuts on the Bank of England, with the base rate plummeting from 5 per cent to 0.5 per cent in the space of 12 months. These reductions have severely harmed the return on savings, causing pensioners' incomes to drop.
The survey, which questioned more than 2,000 pensioners, found that the average interest on savings accounts of £37,000 have slumped from £158 in April 2008 to just £16 in April 2009. The drop has seriously harmed pensioners, whilst it is feared that the Chancellor's impending budget will continue to neglect the elderly. Gordon Brown has, however, promised to look into tax breaks to help savers, whilst further concessions for the elderly may be considered.
Director General of Safe Home Income Plus, Andrea Rozario, stated her belief that pensioners are increasingly worried about their income. Having saved for their entire lives in order to supplement their state pension with a private pension, Mrs Rozario commented that the base rate falls are leaving many pensioners' incomes down by as much as 30 per cent.
Pensioners Suffer from Bank of England Cuts
Financial Services > e-banking > Banking news
Pensioners Suffer from Bank of England Cuts
Fri, 17 Apr 2009
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