Around 11 million over 50s say they save regularly and while they put away £165 a month on average, one in four save more than £250 a month. Interestingly, both men and women are keen savers but it seems men like to squirrel more away each month. On average, men over 50 save £178 each month, whereas women save £145.
However, the over 50s aren’t just concerned about their own financial future, as one in four are building a nest egg for their grandchildren. On average, grandparents aged over 50 say they save £56 a month for their grandchildren, the equivalent of almost £700 a year. Perhaps this is because they are worried that their grandchildren are not able to save for themselves.
Grandparents say they are saving for their grandchildren’s university fees (39%), school supplies, such as laptops or university books (31%), and a deposit for their first house or flat (18%).
Indeed, teenagers hoping to learn to drive or own their own set of wheels should speak to their nan, as one in seven say they are saving for their grandchildren’s driving lessons and the same are also putting money aside each month to be able to help them buy their first car.
When it comes to saving for themselves, the over 50s are putting money away for a nice holiday (59%) or to help fund their retirement (34%). However, men appear to have a different plan for their savings, as men are most likely to want to use the money to buy a new car (men 23% vs women 14%), whereas women are hoping to use it to buy some new garden furniture or to give their home some TLC (women 26% vs men 20%).
Jeff Bromage, chief operating officer at Saga Personal Finance, said: “The over 50s are savvy savers and don’t like to live beyond their means. And it appears they’re not just worried about their own financial welfare as our research shows their grandchildren’s financial future is also at the forefront of their minds.
“Our research shows they really are the generous generation and it’s nice to see that so many people are in a position to be able to help their grandchildren financially, whether that’s contributing to university fees, paying for driving lessons or helping them get on the property ladder. However, grandparents are wise to give their grandchildren money little and often rather than giving them a large lump sum as this can reduce their inheritance tax liability.”
