With a new year approaching, are you beginning to think about how you can boost your savings? We’re calling on the Government to help consumers save more in 2015.
The latest findings from our Consumer Insight Tracker show that while nearly half of us are worried about our level of savings, a third of people are planning to save less in the coming months.
Just one in seven people say they plan to add to their savings in the next year. This is despite the number of people who describe the UK economy as good more than tripling since 2012, rising from 8% to 25%. And more than a quarter say they expect their finances to improve in the next year.
A quarter have no savings
We found a quarter of people have no savings at all. Although not everyone can afford to save more or may be prioritising paying down debts, we previously identified that around 14 million people could be encouraged to save more. Of these, approximately 2.5 million don’t save but could afford to.
As the economy turns a corner, we’re calling on the Government to do more to support better savings habits next year, and by doing so, help households that can afford to save improve their ability to cope with financial shocks.
In 2015 we want to see a national savings strategy introduced, to be developed with the financial services industry, employers and consumer groups.
We know that this is a key concern for many. Our Scrap the Savings Trap campaign is supported by more than 52,000 people who believe savings providers could do more to help consumers get the most from their savings.
Get more from your savings
We’re calling for banks and building societies to ensure their customers’ money is not left to languish in sub-standard savings accounts. We also want them to make ISA switching easier and stop leaving customers in the dark about the best return on their savings.
Our previous research into savings behaviour has found that the following are strongly linked to successful saving:
- Saving regularly each month – this is crucial to building and maintaining a three-month savings buffer.
- Saving for a rainy day – saving a regular amount is more successful than saving towards a specific goal like a holiday or car.
- Keeping savings separate from other money – those with a savings buffer are more likely to have a specific savings product which means it feels like a separate ‘pot’ and they are less likely to dip into it.
Do you adopt any of the savings behaviours above? How do you think the Government could help you save more in the year ahead? Do you want better savings accounts, work schemes or more flexibility to move your money?
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