A quarter of UK over-55s are lacking confidence in their current financial position, new research from Paragon Bank has revealed.

This compares to 44% of over-55s who have said they do feel secure about their financial standing.

Paragon’s research, based on a study of more than 3,000 people over the age of 55 also revealed that 46% of respondents have experienced a reduction in their disposable income during the first quarter of the year, with a higher proportion of women (49%) experiencing a downturn in income compared to men (43%).

Those aged between 55 and 64 were more likely to report a significant reduction in disposable income (11%) than older groups. Just 8% of those aged between 65 and 74 reported a large reduction, compared to 9% of 75 to 84-year-olds citing substantial falls.

A quarter of respondents claimed they lacked confidence in their ability to meet energy bill payments, with 16% worried about meeting other household bills.

Paragon director of savings, Derek Sprawling, said: “The cost of living issue and inflationary environment has impacted all of us in some way, but perhaps those who are on fixed incomes or receiving a pension have felt the impact more keenly.

“A quarter of over-55s have experienced a reduction in their disposable income and, as a result, have been cutting back on spending, from the weekly food shop to days out.”

He added: “In this environment, it’s important that people’s money is working as hard as it possibly can for them. We have seen an increase in savers switching their money as they seek better rates on offer, but there is still a huge amount of money sitting in bank accounts earning very little.

“In this inflationary environment, it’s vital that people shop around for the best rates because they could be losing out.”

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