The credit crunch has hit many households in UK, however, studies suggest that the over 50s are the latest victims of the economic downturn. A research by Alliance and Leicester found that only 2% of respondents have been spared the effects of crunch.

With the UK economy already standing at below inflation, this could be temporary welcome news for the over 50s. Lenders are now offering advice to this group in order to help them choose a bank account which will give them value for money.

Emma Walkley, Current Account Manager at Alliance & Leicester said: “At the moment, it really is a case of ‘every penny counts' for the over 50s, and this generation more than any will be tempted to return to the ‘make do and mend' lifestyle in which they were been brought up.

Walkley added: “However, most of the regular outgoings that have risen so much are now set to fall, but they still need to look at how to save costs, and maximise their income, wherever they can. For many, this could be as simple as choosing a bank account that works harder for them, giving them better value for money in their retirement.”

“Mending and making do”

Other reports suggest that 50% of people aged 50-plus choose not to take any action that will subsequently change their financial situation. Additionally, many of them will not shop for alternative bank accounts and are equally reluctant to search for ways of protecting their money.

Figures show that only one in 14 (7%) has taken the initiative to switch their current account provider in order to save money. The research by Alliance and Leicester also shows that men and women of this generation are happy to ‘mend and make do’ and would not particularly be keen to get value for money. The bank now offers a Premier 50 account which also covers the potential costs of out-patient diagnostics testing.

What to expect from Premier 50

Health is an issue of concern for the over 50s and getting travel insurance is increasingly proving difficult but even when they get cover, it ends up costing them alot more.  However, the Premier 50 account is tailored to the group and comes with an annual worldwide travel insurance and £750 for out-patient diagnostic testing providing over £1,000 worth of benefits for just £10 a month. This packaged account also offers a best-buy rate of credit interest of 8.50% AER.

The Alliance and Leicester Premier 50 account will benefit those who have not taken out private medical insurance. At the same time, it will also suit anyone who no longer receives PMI free with their job and those who are seeking quick access to medical advice including diagnosis for health concerns at cost of only £10 a month.

According to the bank, the monthly fee is a small amount to pay given the benefit of annual worldwide travel insurance. But this aging population has not been spared the rising cost of fuel this winter and many could be faced with having to choose between a good diet or paying for heating in their homes.