Personal insolvency advice has become a necessity for many Britons who should be enjoying a happy retirement while living off of the income generated by their life savings.
With the base rate at a long-term low of 0.5%, many savers are still receiving little to no interest on their accounts – meaning those in retirement who rely on interest to fund their lifestyles have been depleting their savings instead for several years.
A report from insolvency trade body R3 notes the impact this has had, with a rise in older individuals seeking personal insolvency advice in recent years.
Phillip Sykes, president of R3, said: “There is a very clear generational divide when it comes to the impact of interest rates.
“The likelihood of someone over 65 entering insolvency has increased since 2009, whereas it has fallen for all other age groups.”
His comments follow the publication of R3 research showing the number of people who would be positively affected by a base rate increase is roughly equal to those who would be negatively impacted.
But with the negative effects typically stemming from substantial borrowing – for example, a mortgage – these individuals stand to lose heavily compared to the modest increase in interest many savers will see.