Low interest rate 'hitting some people in retirement'

The country's low base rate may have negative consequences for a number of people in retirement, it is believed.

According to David Black, Defaqto's Banking Specialist, the continued rate of 0.5% could prove a "severe blow" to certain older people.

However, Mr Black did offer some advice to retired savers and other consumers concerning their financial situation.

He commented: "Moving variable rate savings accounts to take advantage of things like introductory bonuses from those banks and building societies appearing in the best buy tables would boost the returns for many."

The expert noted that he was not overly surprised to hear that the base rate is to remain at its record low figure, despite the issues that may arise from the bank's decision.

Meanwhile, Senior Investment Adviser at Bestinvest Adrian Lowcock has recently pointed out the popularity of ISA allowance changes which have applied to people over the age of 50 since October of last year.

Posted by David Shuker.