Saga CEO Dismisses State Pension Changes, Cites Booming Holiday Demand

The over-50s group Saga has announced it is unconcerned by potential changes to the state pension's triple lock, as the company experiences a surge in demand for its holidays, cruises, and travel insurance.

Chief executive Mike Hazell stated that Saga's customers are typically less dependent on the state pension due to their affluence. This perspective comes in the wake of an announcement regarding changes to the triple lock mechanism, which is set to be altered to a double lock from April 2030. Despite broader economic concerns, Hazell described his customer base as "economically resilient" and views holidays as a "priority" rather than a discretionary expense.

Financial Performance and Outlook

Saga's shares saw a significant increase of 21% following the company's upward revision of its annual profit guidance. The FTSE 250 group now anticipates an annual profit before tax in the range of £65 million to £70 million for the fiscal year ending January 2027, a notable increase from the £44.2 million reported last year. Hazell also indicated that Saga is "significantly ahead" of its medium-term goal to achieve annual profits of £100 million by January 2030.

The group's financial performance for the six months ending July 31 showed nearly doubled profits, reaching £46.6 million, with revenues climbing 12% to £367.5 million. This growth was largely driven by the popularity of cruises, with itineraries including the Mediterranean and Norwegian Fjords, as well as new UK-based holiday offerings in cities like Canterbury and Chichester.

Strategic Simplification and Operational Resilience

Saga has been undergoing a business turnaround, which has included exiting its insurance underwriting operations through the sale of Acromas Insurance Company to Ageas. This strategic simplification has allowed the company to focus on new ventures, such as a pet insurance offering. Hazell also highlighted the role of "smart technology" on its cruise ships in navigating operational challenges, including extreme weather events like low river water levels on the Rhine and Danube.

Despite disruptions such as low river levels and geopolitical events in the Middle East, profits for the second half of the year are expected to be on par with the same period last year. Market analyst Mark Crouch of Etoro commented that Saga's turnaround efforts are revitalizing its reputation, noting improvements in profit, cash generation, and debt reduction, which are underpinning investor confidence.

The report on Saga's performance was published on September 30, 2026.