Most over-55′s using internet banking

A OnePoll survey of over-55′s found 70 per cent are currently using the internet to manage their finances. Almost half are also logging on to source pension schemes, independent financial advice and stocks and shares.

Experts believe the shift may have been encouraged by better interest rates, product ranges and general convenience online.

But if their attitudes to retail are anything to go by, a quarter of internet users aged 55 and over are also banking online to avoid dealing with “irritating” shop assistants and to escape the maddening crowds.

A further eight per cent made the switch online because of personal safety issues in public, while 37 per cent maintain internet shopping in general is a “more pleasant experience”.

The findings were compiled by market research specialists SilverPoll, and were released for the first time yesterday. It surveyed 2,000 Britons aged 50 and over as part of an-depth report into their general online buying habits.

Managing Director William Higham said the findings show greater confidence levels of today’s older internet users.

He said: “The over-50s are spending more and more time online. In fact, many older internet users now prefer to buy tickets, CDs and DVDs online than in person.

“The more confident they become online, the more of their offline tasks they will try to perform that way. Indeed, 95 per cent of over-50 internet users have shopped online and 70 per cent have booked a holiday online, so it makes sense to see them banking online too.

“In fact, our survey shows that the over-50s are more confident in their online banking abilities now than those in their 30s or 40s.”

The survey was conducted in order to compare and contrast the attitudes and behaviours of regular internet users aged 50 and over – the silver surfers – and their younger counterparts.

Specifically, the research aimed to determine their likes and dislikes, purchase drivers and barriers in order to provide decision makers with a greater understanding of this burgeoning market.

The company found that 70 per cent of people aged 55 and over have used online banking, and that 43 per cent has searched for information about pensions.

A further nine per cent has logged on to buy stocks and shares, while 15 per cent are regular online gamblers.

In fact, 60 per cent of over-55 year-olds believe they are “good” at online banking, compared with only 56 per cent of 18-24 year-olds, and 55 per cent of 35-44 year-olds.

But despite the rise in internet banking, almost half of respondents (42 per cent) said they remained fearful of their financial safety online.

Nearly two-thirds (65 per cent) are happy to enter their contact details into a ‘reputable’ website, but only 26 per cent are willing to divulge their financial ones. Indeed, 22 per cent claim never to have done so.

Their willingness to part with their details depends largely on the nature of the site. For example, 55 per cent are happy to do so with Paypal, and 45 per cent have done so on Amazon.

Conversely, 61 per cent are aware of the dangers but “happily” bank online on a regular basis.

One reason they prefer some websites to others is design. Some 44 per cent think websites can be harder for older people to navigate around, while 15 per cent said the font on some websites was too small.

Overall, 82 per cent of older people see the internet as a “good thing” generally, and 78 per cent are glad it was invented.

Almost a quarter (42 per cent) first ventured online because they thought it would be “useful” to do so. But 28 per cent did so because a family member encouraged them, or because they “bit the bullet” and bought a personal computer.

Mr Higham, of SilverPoll, said: “With 11 million over-50s now online, it’s increasingly important that financial companies consider their needs and behaviours when creating their online strategy.

“And, though many of these silver surfers are now as confident online as their younger counterparts, it must be remembered that their needs and behaviours can be very different .”

Category: Banking News, Savings & Investment News