It’s difficult to break the habits of a lifetime, as recent data from HMRC highlights. It seems some pensioners are continuing to save for their future, with the average value of an ISA held by someone aged over 65 now totalling £47,000, an increase of £4,500 on the previous year.
Squirrelling away the acorns
Many pensioners may be choosing to put money aside to cover unforeseen costs and to buy more expensive one-off items, rather than relying on their daily income to foot the bill. Other over-65s are continuing to save through fear of running out of money. Whilst this may be a very sensible approach in many cases, some over-65s could be living unnecessarily frugal lives as a result of this overly cautious methodology. Treading too carefully with your finances in retirement may deprive you of your ability to enjoy yourself now.
A fine line
It’s undoubtedly a fine balancing act for many people to ensure they plan for their future without forgetting to live in the present. Whilst these habits are admirable, everyone deserves a happy, fulfilling later life. Seeking sound financial advice can help to ensure you properly plan your finances before and during retirement, to achieve the right balance and peace of mind that you’re making the right decisions for you and your future.
It is important to take professional advice before making any decision relating to your personal finances. Information within this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.
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