Nearly 90% of the over 50s agree we are suffering from a credit crunch with over 80% believing it will lead to a UK recession. As a result, it seems the mature market is making significant changes in their financial planning to budget for the future, but appear to be resisting any immediate change in lifestyle.
Millennium, a UK mature marketing agency, commissioned the research to investigate the over 50s’ concerns towards the much hyped credit crunch. More than three quarters of the mature believe the credit crunch will impact their investments and nearly 60% are worried about their pension.
Despite their concern, their confidence in banking systems seems untouched, with over half still happy that their savings are safe in their current bank and building society. However, one in three say they have become more risk averse and are moving away from shares towards steady investments such as fixed rate saving accounts and ISA’s.
Interestingly, over 75% of those questioned said they had no intention of giving up holidays, meals out or charitable donations with two thirds prepared to dip into savings if necessary. However, only four% would consider equity release as a means of securing additional income.
“Many view the over 50s as an extremely lucrative market but the research highlights that despite accounting for 80 per cent of all consumer wealth in the UK, they are not invincible when it comes to the credit crunch,” says Fiona Hought, managing director, Millennium.
“The mature market is showing concerns about investments, price rises and is prepared to use their savings to make ends meet. This is a generation which in general has been fairly cautious and made provisions, but marketers need to recognise the change in consumer attitude and adapt their services appropriately to the current economic climate,” adds Hought.