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Saga seeks solutions for suffering savers

With interest rates remaining at 0.5% for the 30th consecutive month, Saga is calling for higher ISA allowances and is encouraging older savers to shop around for the best rates.

Ros Altmann, director general at Saga, said: “If interest rates were low and inflation was low, things might look okay, but with low rates and soaring inflation, people are being stung by a double whammy, which continues to erode the value of their savings month after month.”

Saga believes there are steps the government could consider to help improve older savers’ positions, for example providing higher ISA limits for retirees.

Dr Altmann continued: “People are increasingly concerned about how to fund their care provision, and rightly so. We need to make sure people are aware, are prepared and are as protected as they possibly can be.

“One of the options available to combat the effects of low interest rates could be to introduce a specific ISA allowance for care so that at least any savings income will not be taxed.

“Month after month, Saga has expressed concern for savers suffering such low interest rates which continue to erode the older generation’s hard earned savings at a rapid rate.

“But if this is the situation we’re currently stuck with, the authorities should help provide some good alternatives to older people to ensure they do not see their retirement nest egg, their care funds and their hard earned ‘peace of mind’ flushed away.”

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