Savings cuts for over 50s 'may lead to credit increase'

Recent rate reductions by leading Isa providers for the over 50s may cause hardship for those trying to save towards retirement, according to uSwitch.

Some providers have cut rates on their instant access Isas by as much as 0.25 per cent, the body states, meaning those who rely on their savings could find themselves worse off and may have to turn to credit cards to fund their retirement.

Rumina Hassam, savings expert at uSwitch said that this cut in rates may not be the only one to hit savers.

"Sadly, we may see more of this 'rate trimming' in the coming months," she commented.

Figures from Aviva have also indicated that retirees are struggling with their finances, with four in ten saying they would like more money and one-fifth wishing they had budgeted better in their first year after giving up work.