A third (33 per cent) of those aged 55-68 have never switched savings accounts, potentially missing out on “crucial” savings, according to research from Shawbrook Bank.

The research also showed that 21 per cent have never checked the interest on their accounts, but 58 per cent said rates are important when choosing a savings account.

On average, those aged 55 to 68 have not switched or opened a new savings account within the last year, with a quarter (25 per cent) noting that they have not opted for a new one in the past 18 months.

Meanwhile, 27 per cent of respondents confirmed they had not opened an additional account during that time.

In addition to this, the research highlighted that pre-retirees have not been checking the rate they’re currently earning on their savings, as on average pre-retirees have not checked this in the last five months.

However, one in five (21 per cent) admitted they have never checked the interest on their accounts, resulting in these savers being stuck on lower less competitive rates. 

Yet, when it came to choosing a savings account 58 per cent stated the rates offered would be most important to them, while 50 per cent confirmed that rates have been and would be key when choosing a savings provider. 

"A well-chosen savings account can provide both supplemental income and peace of mind during retirement,” Shawbrook Bank head of savings, Adam Thrower, explained.  

“Whether you're saving for a holiday, covering daily expenses, or simply building a financial cushion, many pre-retirees risk missing a key opportunity to enhance their retirement plan.

“Alarmingly, one in four individuals never check their savings rate, potentially losing out on hundreds of pounds in interest.”

Thrower said that with the Bank of England cutting the base rate to 5 per cent in August, savings rates are likely to decline.

He suggested that pre-retirees should act “swiftly” to ensure their savings strategy isn't the “missing piece in their retirement puzzle”.

“The window to lock in high long-term fixed rates may be closing, and maximizing this opportunity could be crucial for those nearing retirement,” he concluded.

---