The Abbey National has found that over sixty percent of UK holidaymakers have used savings to finance a holiday this year, while others are using the money to pay for a holiday before it even gets to the savings account.
Over a quarter of people surveyed by the Abbey National felt that the best thing to do with the spare money they had was to use it to finance a holiday rather than put it into a savings account or other savings vehicle.
A spokesman from the Abbey National suggested taking a little bit of the money that was being allocated to holidays and use it to build up some savings. This way the person gets their holiday but also begins to build a savings fund that may well prove essential in the future.
A Sainsburys Bank spokesman feels that there are more restrictions and conditions applied to savings accounts than ever before.
Having looked at the current state of the market the Sainsburys Bank spokesman has noticed how many savings accounts have restrictions on withdrawal amounts and periods, as well as how it impacts on interest rates, with some quite hefty penalties on some for making withdrawals during the year.
Another aspect that has been noted is the use of age limits on some savings accounts, targeting either the younger or older market. Ideally all categories of customer should be able to enjoy similar levels of interest and benefits believes the Sainsburys Bank spokesman.
A new survey by Saga Insurance has found that the grown up children of elderly parents may well end up financing their parents long term care from what was their inheritance.
As a company that works exclusively with the over 50’s Saga Insurance took the opportunity to discuss their plans and found that only 10 percent of people have actually discussed long term care for elderly parents. More worrying still perhaps is that nearly half of them fail to appreciate the actual costs, which are around GBP25 – 30,000 per year.
The view of nearly 60 percent of those who discussed the matter with Saga Insurance is that any inheritance will be used to finance the long term care parents may need. A large part of this may be that, with all the other financial pressures on people, trying to put aside money for parental care is just not possible, at least for the majority of the population.
