Savers should take advantage of ISAs, make sure their savings attempts to keep up with inflation, and plan for their future finds new research into what older savers would advise younger generations.

Conducted by Paragon Bank, the research involving over 1000 savers over 70 identified five top lessons those aged 70-plus wished they had known when they were younger. They included:

• Save a little, often (32%)
• Make sure my savings kept up with inflation by moving my money or investing (30%)
• Plan for your future (29%)
• Start a pension earlier (27%)
• Take advantage of ISAs (24%)

The advice comes during a continued period of high inflation, with the Bank of England expecting a further step-up in late 2022.

“You can't beat inflation, but you can minimise the damage”, said one saver in their 70s when asked about the need for savings to keep up with inflation – while another cited the need to hold “enough cash to survive when inflation is rampant”.

On the need to take advantage of ISAs, the benefit of investing when interest rates rise was highlighted due to their having missed out their missing out on previously high rates. “I started a private pension in the 80s, which was very small as I could not pay in much. With high interest rates at the time, I should have paid the money into an ISA.”

In regard to savings, advice about becoming an active investor was a common theme. “Save, and move money around to take advantage of changing interest rates”, said one saver over 75 – with another, also over 70, drawing attention to the need to “save for times like unemployment”.

“Lack of understanding of pensions in my late 30s”, said one saver over 75 when asked to identify the lesson they had wish they had learned when they were younger.

The research also uncovered middle-aged savers were starting to regret previous financial decisions, with growing concerns over their future retirement plans. 

“Always put a little bit by and more into your personal pension”, said one saver over 45. “I've only recently revisited all this, but wish I'd done it sooner, as I’m concerned for my retirement income.”

The new research follows further research by Paragon Bank that found that two out of five savers have been providing financial support to their families due to the cost-of-living crisis, with those over 70 more likely to do so than those in their 40s.

Commenting on the findings Derek Sprawling, Paragon Bank Savings Director, said:

“Learning what is best for your savings is unfortunately something many learn when it’s too late, with people left regretting they hadn’t made the right decisions sooner – highlighting the need to start making sensible plans now and being prepared for changes in individual circumstances.

“While younger savers are facing the challenges caused by the cost of living and inflation, they should start looking into products, including ISAs, that provide them with an opportunity to start building their savings. 

“These practical tips from older savers are an excellent guide to what the younger generation could be doing now to start building their savings pots. Thanks to the insight and wisdom shared with us, I hope savers heed their words and start to plan for their future.”

For further information contact:

Tom Frew
Media Relations Manger
[email protected]
www.paragonbank.co.uk 

Notes to editors:

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 £13 billion of assets under management and manages over 450,000 customer accounts.

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. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ.