The research amongst over 1300 people aged over 65 shows that on average they plan to invest £13,876 in the new bonds, although around 70% said they have more than £20,000 saved so will also be looking for other reliable homes for the rest of their savings.
The survey also asked whether the newly announced changes to ISAs – that they can be transferred to a spouse tax free following the death of the account holder- would make them more likely to invest in an ISA. This change is warmly welcomed by more than a quarter (27%) of over 50s who say they are more likely to put their savings in an ISA following the announcement in this month’s Autumn statement.
Paul Green from Saga commented:
“Many over 50s rely on interest from their savings to boost their income. Our research shows that they clearly appreciate the effort the Government has made to make their retirement savings work as hard for them as possible and they intend to take them up on the offer. However, the investment limits on pensioner bonds means that many people will also be looking for alternative reliable homes for their money - such as ISAs to create both income now and growth to help fund the retirement of their dreams.”
