Over 50s typically think that the rate will rise to 0.75%, as well as expecting a further increase in inflation in 2017. On average, people believe the consumer price index will be around 2%, but Saga warns could be a huge blow to those on a fixed income in retirement.
A quarter of over 50s have a positive outlook overall for 2017, believing the overall value of Britain’s 100 biggest companies listed on the Stock Exchange will increase.
Only one in six think the FTSE will be lower by the end of 2017. Men are more optimistic than women as they’re three times as likely as women to think the FTSE 100 will increase (36% and 12% respectively).
Sally Merritt, head of product, Saga Money, commented: “The decline in the base rate has really affected those relying on their savings for income this year, highlighting for many that they may be best off investing their money for the chance of a higher return.
“We can see from our research that many over 50s are particularly savvy and keeping a close eye on the financial climate, which is key for people trying to make their money work hard for them throughout their retirement.”
