Do savings habits improve with age? According to research from Saga Personal Finance, that could well be the case, with those aged 50+ able to squirrel away an impressive amount each month, and many do so to benefit their families as well as themselves.
The figures show that respondents aged 50+ save an average of £165 a month, while one in four are able to save more than £250. However, they're not just concerned about their own financial future – while half of over-50s surveyed save money for themselves each month (59% are saving for a nice holiday while 34% are doing so to help fund their retirement), one in four are also building a nest egg for their grandchildren, saving an average of £56 per month for this reason.
Many are doing so to help set them up for the longer term, with 39% saving to help cover their grandchildren's university fees, while 31% want to help pay for school supplies and 18% are saving towards the deposit for their grandchild's first home. A further one in seven are saving for their grandchildren's driving lessons, and the same number are doing so to help them buy their first car, giving them a clear route to independence.
"The over-50s are savvy savers and don't like to live beyond their means," said Jeff Bromage, chief operating officer at Saga Personal Finance, "and it appears they're not just worried about their own financial welfare, as our research shows that their grandchildren's financial future is also at the forefront of their minds.
"They really are the generous generation and it's nice to see that so many people are in a position to be able to help their grandchildren financially, whether that's by contributing to university fees, paying for driving lessons or helping them get on the property ladder."
He also points out that grandparents would be wise to give their grandchildren money little and often rather than in a large lump sum to reduce their inheritance tax liability, but it's also important to think about ways to maximise your savings income to benefit everyone.
The best way to do that is to find the best savings account possible, and you'll probably want to look into cash ISAs (or even stocks & shares versions if you've got a higher risk appetite) as well. So, start comparing the options and you may find that you're able to boost your savings pot to reach your savings goals, as well as those of your grandchildren, quicker than you thought.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.