A quarter of Britons aged over 55 lack confidence in their current financial position and nearly half have experienced a reduction in their disposable income, Paragon Bank research has revealed.

The survey of over 3,000 people aged 55 or over found that 25% felt unconfident in their current financial position, compared to 44% who felt secure about their financial standing.

Nearly half (46%) of respondents experienced a reduction in their disposable income during the first quarter of the year, with a higher proportion of women (49%) experiencing a downturn in income compared to men (43%).

Those aged between 55 and 64 were more likely to report a significant reduction in disposable income (11%) than older groups. Just 8% of those aged between 65 and 74 reported a large reduction, with 9% of 75 to 84-year-olds citing substantial falls. 

A quarter of respondents claimed they lacked confidence in their ability to meet energy bill payments, with 16% worried about meeting other household bills.

Rising costs have impacted how this demographic spend their money. Nearly half (46%) said they had reduced home energy usage during the first quarter of the year, with just over a quarter (26%) reducing how much they spend at the supermarket.

Other areas where over 55s have cut back include dining out (37%), car usage (30%), holidays (27%), concerts or theatre (23%), days out that require an entry ticket (20%) and cinema (19%).

Derek Sprawling, Paragon Bank Director of Savings, said: “The cost-of-living issue and inflationary environment has impacted all of us in some way, but perhaps those who are on fixed incomes or receiving a pension have felt the impact more keenly. A quarter of over 55s have experienced a reduction in their disposable income and, as a result, have been cutting back on spending, from the weekly food shop to days out.”

He added: “In this environment, it’s important that people’s money is working as hard as it possibly can for them. We have seen an increase in savers switching their money as they seek better rates on offer, but there is still a huge amount of money sitting in bank accounts earning very little. In this inflationary environment, it’s vital that people shop around for the best rates because they could be losing out.”  

For further information contact:

Michael Clarke
Head of Media Relations
Paragon Bank
07740090746

Notes to editors:

Paragon surveyed 3,000 Britons aged 55 or over in March 2023

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £14 billion of assets under management, helping more than 340,000 customers to achieve their ambitions.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.