Analysis of HMRC data* highlighted the fact that pensioners are continuing to save for their future and to increase their retirement funds in later life. The latest HMRC statistics reveal that the average value of an ISA held by someone aged over 65 now stands at £47,000. This an increase of £4,500 compared to the previous year. The extra money is being used alongside their personal pension when extra expenses come around.
A cautious approach
The data indicates that many pensioners may be putting aside money to cover unforeseen costs. These costs could be a broken boiler or to buy more expensive one-off items rather than relying on their day-to-day income to pay for such things.
It seems other over-65s are continuing to save through fear of running out of retirement income in later life. While this may be a good idea in many cases, some over-65s could be living unnecessarily frugal lives as a result of this fear.
Finding the right balance
It is always a delicate balancing act, ensuring you plan for your retirement future without forgetting to live in the present. Seeking sound financial advice can help to ensure you achieve the right balance.
At Pension Works, we are retirement planning specialists. We can advise on how to increase your retirement funds while you’re employed, but also help to utilise your pension funds best when you have retired.
Pension Works is based in Knutsford, Cheshire and offer expert telephone pension advice. Being a telephone-based advisory firm allows us to service your needs at a time and location suitable for you. For more information about our service click here or call 0808 164 2664.
*Just Group, May 2019