Pensioners are finding it harder to save money as they are hit by rises in the cost of living, a new survey has shown.
One in four people aged over 65 said they were saving less now than they were three months ago, and nearly half claim this is because they can no longer afford to, according to Sainsbury’s Bank.
A fifth of retired people admit they are not saving anything at all on a regular basis, and just 4% claimed they had been able to increase the amount they set aside during the past three months.
Across all age groups, 25% of people are saving less than they were three months ago and only 14% are saving more.
Household budgets are showing signs of strain after it emerged Britons saved the smallest slice of their incomes since early 1960.
The Office for National Statistics (ONS) said its household savings ratio – the proportion of disposable income not spent – fell to 2.1% in the first quarter of 2007, compared to 3.9% in the previous quarter.
The figure, which represented the lowest savings ratio since the first three months of 1960, came after a surprise hike in interest rates in January, following two previous increases in August and November.
While consumption was reasonably strong in the first quarter, analysts said the pressure on savings suggested that spending could now start to slow.