News

As the country faces an uncertain few months politically and economically, new research by Saga found that most over-50s believe that the key economic indicators of inflation and the Bank of England base rate will remain broadly stable through 2019.

The survey of 12,623 Saga respondents aged over 50 found that three in ten were predicting a small rise in the base rate to 1%. In addition, the most common prediction for inflation would see it remain broadly stable at between 2.51-2.75%.

When asked the same questions this time last year, Saga respondents were very accurate with their predictions for the end of 2018, with the most common predictions being between 0.75-1.00% for interest rates and between 2.51-3.00% for inflation.

At the same time, the current economic uncertainty facing the country as we approach Brexit is reflected in the over-50s less optimistic predictions about the FTSE 100 Index. The most likely level of the FTSE 100 Index predicted by Saga respondents was between 6501 and 7000, which is not only lower than the November 2018 average, but it is also considerably down on their predictions this time last year, where they were expecting a score of between 7,301 and 7,500 by the end of 2018.

Jeff Bromage, Managing Director, Saga Personal Finance, commented:

“As we face the swirl of debate and indecision around Brexit, it is important to see that the over-50s retain confidence in the inherent strength of the British economy and don’t believe that the country is about to face the sort of economic shocks that would see significant rise in inflation and interest rates in 2019.”

“While the pessimism about the FTSE 100 in 2019 shows this is not blind optimism, we are not seeing the dire predictions from some reflected in the attitudes of the UK’s over-50s.”