How are the over 50's managing their finances?

A new study from Saga Equity Release today reveals that a fifth* (17%) of over 50s have little money left over to enjoy their retirement once they have paid off their debts and more than two fifths (41%) of retirees find clearing their debts difficult**, highlighting how hard it is for many people to fund their dream retirement. However, an increasing number of over 60s are now using equity release to unlock money so they can enjoy a better quality of life in retirement. With more than one in ten** (13%) over 55s retiring in debt, equity release is being used to clear these and alleviate financial worries, leaving people better off in real terms and free to get on with enjoying their retirement. The research shows that two fifths (40%) of this age group have used equity release to clear borrowing, whilst a third (31%) use it to re-mortgage.
Over half of over 60s (52%) use equity release to carry out home improvements and transform their homes, while a third (34%) fund the holiday of a lifetime. A generous 20% give the money as a gift to family.
Andrew Goodsell, Executive Chairman, Saga Group, comments: “This study dispels the concept that equity release is the last resort for those who have nowhere else to turn. We have found that people are increasingly likely to use equity release to clear debts, enabling them a better quality of life in retirement.”

Over 50s Perform Best in Financial Markets

Not only is 80% of the nations wealth vested in us and we contribute 60% of the nations savings but apparantly we are also the most astute investors. Maybe that could explain the statistics above.

A new five year study of financial trading shows that the over 50s are by far the most successful, profitable traders and investors: a full 40% more profitable than their 20-something counterparts, ending the myth that risk and results are the stuff of youth. The research – conducted by financial trading coach and author Vince Stanzione of www.fintrader.net – studied the trading of 1000 UK individuals between October 2004 and October 2009, covering bull and bear markets and the volatile 2008/9 markets.

Time spent trading was a factor for all three groups. The 18-30s and over 50s spent more time on their portfolios, which may be because the 30-50 group had greater work and family commitments elsewhere. But clearly the over 50s had much greater productivity.

Risk insights also came to light from the research. Stanzione continues: “Another myth that the research busted was that older people are less willing to take risks. The 50+ traders took higher risks for higher returns than the 30-50 group, with a strong appetite for commodities and commodity companies: gold, crude oil and silver featured highly in their portfolios.”

The secret to the difference between youth and age lay in discipline, says Stanzione: “The 18-30s tended to break trading rules and failed to follow systems through. Maybe they had poor attention spans as they would often close out winning trades too soon. Older traders kept better records and managed their money better.”