Almost a quarter of people aged 50 and over are being forced to withdraw money from their ISA to cover basic daily living costs, according to latest research by Skipton Building Society.
The survey of over 2,000 people found that 40% had resorted to spending their tax-free savings funds to pay for grocery shopping and utility bills, despite their best efforts to put money aside on a regular basis.
One in ten people aged over 70 stated that they had withdrawn money from their ISAs to supplement their pensions.
The findings reveal the true extent of the financial problems facing people in or approaching retirement, who are struggling to make ends meet in the face of escalating living costs, poor returns on pensions and high inflation.
Corporate communications manager at Skipton Building Society, Stacey Stothard, said: "Instead of being rewarded for saving over the years, many people now have little option but to start draining down their ISA balances, just to get by.
"At a time when younger members of the family are feeling the squeeze so too are their parents, who are facing the prospect of reduced retirement income and financial uncertainty."
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