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ABI research shows that action is needed now as UK continues to fail to save

Much more needs to be done to increase the savings habit among UK households according to the ABI's latest Savings and Protection survey published today, 3 April. While optimism in the economic outlook may be rising, just over half of consumers feel that, over the last year, the benefits of saving have fallen.

 

While some savers may have taken advantage of their ISA allowance before the April 5 deadline, the ABI's survey of 2,800 adults shows a disturbing level of  public concern over the benefits of saving. Key findings highlight that:

 

·         Consumer confidence in the economic outlook is rising: 44% expect the economy to improve in 2010, up 5% on the previous quarter

·         Savers and non savers alike both think that the benefits of saving have fallen over the last year. Six in ten people currently not saving say that the benefits of saving have got worse over the last year. Among those who are saving regularly, just over half (54%) said the same.

·         The rise in the level of debt repayment is starting to slow. 12% said that they had started paying off their mortgage debt or increased the rate at which they were paying it off, down from 24% in the last quarter of 2009. For those with non-mortgage debt, the proportion was 30%, down from 33% in the previous quarter.

 

 

 

 

 

Dr Rebecca Driver, the ABI's Director of Research and Chief Economist, warned:

"The UK's economy needs to be built on the foundations of a strong savings culture. The UK's economic recovery needs a government that encourages and supports a long-term savings culture.

"Tackling the level of under saving is a colossal challenge that must be addressed if we are to avoid widespread pensioner poverty. The Government needs to take the lead and encourage healthy attitudes to money in the same way as they encourage healthy lifestyles."    

 

 

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Last updated 01/07/2016