Interest rates will be maintained at the historic low of 0.5 per cent, the Bank of England announced yesterday (September 8th).
The statement came as inflation still stands above the two per cent target at 4.4 per cent. The Bank's Monetary Policy Committee also ruled it will maintain current levels of "asset purchases" financed by the bank's central reserves, known as quantitative easing.
A combination of high inflation and low interest rates means that savers are being hit by a "double whammy", according to Saga's director general Dr Ros Altmann.
She added: "If a rise in interest rates is not to happen, we need to come up with some alternative options to help people weather the storm."
As many older people rely on savings to supplement their retirement income, the decision will see their money continue to rapidly disappear through inflation and consumers are therefore advised to shop around for the best savings policy in the immediate term, the firm added.