The latest ABI / Populus Savings Panel survey of senior UK insurance industry executives shows an improvement in the climate for savings over the last six months. But there is continuing concern that economic and fiscal policies are deterring people from saving.

Stephen Haddrill, the ABI’s Director General, said:

“Reforms to the pensions and savings system, including the recent ISA changes, present good opportunities for savers in 2007. But at the same time, other policies are seen to be damaging levels of long-term saving. We need to see a consistent commitment to boost saving across all policy areas.”

Other notable results of the survey include:

• Interest rates are now seen as having a net positive impact on the personal savings market, moving from -11% to +13%, a shift of 24 points.
• 60% of the Panel believe that recent ISA reforms will enhance saving, with 89% saying that the overall savings limit on ISAs should be increased.
• Debt remains a key concern, with 86% saying that debt levels have a negative impact on consumers’ ability to save for the future.
• Personal taxation is cited as having a worsening net negative impact on saving, falling from -16% to -24%.

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Notes