Generous over 50s want to save some cash to help their loved ones when they have passed on – but one in three who hope to do so are not putting any money into savings.
And out of the rest who are sacrificing some cash for their loved ones, 84% find they must dip into the pot to help with unexpected bills and emergency spending.
The numbers show that the over 50s are rubbish at saving, having unrealistic ideas about their finances and how much they can expect to save – with many giving up and spending what they have managed to save on themselves.
The expectation, says research by Co-op Insurance, is to save £80,000 for loved ones, but the hoped for saving seems out of reach for most.
Savings blown on holidays, homes and cars
The study revealed a fifth do not save any money and a half of savers have managed to squirrel away no more than £10,000.
Although that seems a lot, one in four have saved £10,000, while one in five have less than £5,000 and one in 10 no more than £1,000.
Of those dipping into their savings, 21% decided to blow the cash on a holiday, 20% spent the money on home comforts and 13% bought a car.
Researchers also highlighted the plight of 40% of savers over 50 who could not really afford to put aside money for their loved ones.
Good intentions fail to materialise
Nearly half stopped saving because other expenses were considered more important, 28% faced unexpected bills and 19% handed over cash to family who were struggling financially.
Of these stop-and-go savers, one in five went on holiday with their savings, 15% spent the money on gifts and entertaining at Christmas and 14% funded repairs to their cars.
Charles Offord, Managing Director at Co-op Insurance said: “We know that so many people hope to leave lump sums to their loved ones when they’re gone, but that’s not always possible. Most people with savings do at times dip into them in order to cover other outgoings and life events.”
