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Although the gender gap is closing, women over 50 are the worst-affected by cuts in their savings, it has been revealed.

The fifth annual Scottish Widows UK Pensions Report shows 21 per cent of people over 50 have saved less over the last 12 months than they did in the previous year.

"We have seen our index and ratio figures rise considerably once again this year so the message that people need to improve their pensions savings is certainly getting through," noted Ian Naismith, head of pensions and market development at Scottish Widows.

The index found that 59 per cent of men are saving adequately compared to 47 per cent of their female counterparts, with 21 per cent of the over-50s having cut their savings over the last 12 months.

Rachel Le Brocq, press and public affairs manager at the Building Societies Association, recently urged people to look for a long-term savings account, rather than opting for "headline rates that might draw savers in".

Consumers are more concerned with meeting the cost of their lifestyles than putting money away in savings accounts, it has been claimed.

According to the LV= Look After What You Love Index, 6.7 million people are happy to raid the savings pot in order to live comfortably.

Mike Rogers, LV= group chief executive, commented: "Rather than doing away with valuable insurance or eating into savings, it is important for people to take stock of their financial situation.

"Everyone can take some financial steps, however small, towards protecting the things they love most in life."

One in three people said that maintaining their current income was a worry during the financial crisis, while four per cent said they had taken out insurance to replace their income should they suddenly not be able to work.

Furthermore, 33 per cent have a financial safety net in the form of savings on a deposit, the study found.

Trevor Williams, UK chief economist at Lloyds TSB, recently warned that the desired savings rate has been too low over the last few years.

People can avoid debt management problems later in life by starting to save from an early age, it has been suggested.

David White, chief executive of the Children’s Mutual, said some parents find their own pensions problems made worse as they look to help fund their children’s futures.

"If you are taking on more debt at 50 when you could have been putting more money in your pension fund, you are reducing what you will have when you retire," he warned.

Remortgaging a property is another way in which parents attempt to help their children later in life, although this can also prove costly in the long-term, Mr White claimed.

People in their 20s often start saving towards a house rather than thinking about a pension scheme, he added, which again can have an impact on the security of their finances in the future.

A recent report from the OECD found that in the UK, 43.8 per cent of retirement incomes are derived from private savings, while stocks made up the majority of pension fund portfolios in English-speaking countries before the economic crisis.

Many of the country’s grandparents are putting money aside for their grandchildren to help give them a secure financial future, research has shown.

According to Saga, 13 per cent are making such contributions, equating to around 1.8 million grandparents throughout the UK.

"It’s good to know that the prudence and experience of many over-50s has enabled them to support their children and grandchildren who need financial help in these uncertain times," commented Andrew Goodsell, chief executive of the Saga Group.

Over half (54 per cent) of those questioned said they put the money away to help them fund their adult lives, which may include university fees and career development.

More grandfathers than grandmothers are putting their cash towards helping out their relatives, as the findings also reveal that some even still fund their adult children.

Recent findings from NS&I showed that on average, Britons are setting aside £92.41 each month, up from £90.12 in winter 2008/09.

The number of people saving regularly has also remained constant for the fifth quarter in a row, with nearly half of the population setting some money aside each month, it also said.

Suggestions that people may need to work later in life have come about because they are simply not saving enough, it has been said.

Pension expert Ros Altmann revealed that there has been success in keeping people alive longer, although employers are still "throwing everybody on the scrap heap".

"Somebody needs to stand up and have the courage to say that this is not about working till you drop but about working two or three days a week so that you have money to spend on your time off," she suggested.

Pensions alone are not going to save the pensions crisis, Dr Altmann emphasised, due to the lack of ability people have to save.

Governments must continue reforms to ensure that public and private retirement income provision is socially as well as financially sustainable, suggested a report from the OECD.

Those with long periods in defined contribution, private plans and British workers nearing retirement will feel the greatest impact of the recession on their pension plans, it found, with stocks making up most of pensions’ portfolios in English-speaking countries.

Reports which suggest the country’s economy may be on the mend are leading Britons to change their spending behaviour, it has been claimed.

Findings from Unbiased.co.uk show the average Briton is borrowing 19 pence for every pound they save and during the first quarter of the year savings levels hit £14 billion.

"The drop in savings could of course be an indication that consumer faith in savings returns and the low interest rates are still preventing people from utilising savings accounts," commented David Elms, chief executive of Unbiased.co.uk.

He added that the fall in savings could be due to a lack of consumer faith in them, with consumers potentially "keeping their cash where they can see it" by opting for a current account.

Research from NS&I shows Britons have saved an average of £86.35 each month over the last year, ending on a high of £90.12 during the winter months ending in February.

Despite the current economic climate, the number of people who save money regularly each month remained constant throughout 2008 at almost half of the population (47 per cent).

There is likely to be a further increase in the amount people spend online over the next two years, figures have revealed.

PayPal suggests online shopping could equate to as much as £21.3 billion by 2011, marking an increase of 137 per cent on current spending levels.

"As we all try to make our budgets work harder during the recession it is hardly surprising many of us have headed online to seek a better deal. In fact almost nine million of us now shop online at least once a week," commented Carl Scheible, managing director of PayPal UK.

He suggested that by 2011 as much as one in every £14 would be spent on internet purchases, with many believing that high street shopping will eventually die out as a result.

The payment services provider recently revealed that online retailers could be crucial to helping the country out of the recession as it is likely to post the only growth in British retailing before 2012.

Undertaken by Experian, the report suggested sales could grow to £510 million by 2011.

An increase in the number of mortgage approvals marks a slight improvement in confidence returning to the market, it has been claimed.

Peter Cowell, broker at Click n go Mortgages, said recovery is likely to come at a slow and steady pace, with the latest figures just the first signs of an upturn in the economy.

Mr Cowell continued: "[Lenders] are looking for a hint of an increase in the confidence factor of house prices.

"They are looking for a more stable marketplace and they are probably looking for their arrears book to reduce as well."

He added that mortgage arrears also needed to be sorted out before confidence will start to return to the market and remortgage rates should likewise see some improvement.

The British Bankers’ Association reported on June 23rd 2009, that 31,162 mortgages were approved in May – an increase of 7.4 per cent compared to April.

It revealed that the figure was up by 15.8 per cent compared to May 2008 and the average value of an approved mortgage stood at £133,600.

Credit card users are being urged to stay extra safe after new figures have revealed many of those who are targeted by fraudsters are not reimbursed.

According to Which?, one in five people is not given compensation after being subjected to fraudulent activity, despite claiming to not have acted negligently with their cards.

"Most of us know that we shouldn’t write down our pin, but we should also shred bank statements, be cautious about the passwords we use and think twice before posting personal details online," suggested Martyn Hocking, editor of Which?.

He added that identity fraud is both inconvenient and stressful for victims of it and can even prove costly to those who are denied compensation.

Figures published by payment association Apacs show that plastic cards accounted for 66 per cent of all UK retail spending last year.

Debit cards, on the other hand, accounted for two thirds of all retail spending on cards and credit cards activity increased by two per cent to £126.2 billion last year.

People could find themselves working until they are nearly 80 years of age just to fund a comfortable retirement, it is claimed.

Findings from Fidelity International suggest much of the country’s workforce will have to work until they are 77 to be comfortable in later years, with many having to significantly top up their pension if they are to retire at 65.

"With fewer people in final salary pension schemes, more and more have to make big decisions about their retirement saving yet they don’t have to work until they drop," noted Julian Webb of Fidelity International.

The statistics suggest anyone who wants to retire on two-thirds of their final salary should put an extra eight per cent towards their pension.

A new study from Lincoln Financial Group has revealed that 12 million UK adults are still not making pension contributions from their salary to fund retirement.

Of the quarter (26 per cent) of UK adults who are not saving for retirement almost half (48 per cent) of these claimed they need any extra cash they have to cover day-to-day expenses.

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