UK savings soar to record highs
- But we can’t let go of bad habits: For every pound saved, we are borrowing 48 pence
- Visit www.unbiased.co.uk/getsaving to take control of your finances
In the second quarter of 2006, the UK’s saving pot grew to its highest level this century according to new figures* from IFA Promotion (IFAP), the organisation promoting the benefits of independent financial advice. Indeed, IFAP’s Savings Brake (which reveals the ratio of how much we are borrowing, not including mortgage debt, contrasted with how much we are saving) reveals that UK consumers saved more than 38.6 billion between April and June. However, despite this boost to savings, people are still taking on new debt, and for every pound saved, we are borrowing 48 pence.
David Elms, Chief Executive of IFA Promotion, commented: “This new-fangled allegiance to saving is all well and good, but only if we show equal commitment to controlling our debts. People are beginning to take heed of repeated calls to start saving but seem to be eliminating spending and borrowing behaviour from their budgetary considerations. The simple fact is that if we don’t stop borrowing money, the positive effects of saving will be negated.”
He continued: “And this is all very disappointing to see. When we last reported on the period January to March 2006 we saw what we hoped to be signs of a new financial pragmatism. UK consumers were borrowing only 16 pence for every pound saved, and there was evidence of a net repayment of debt. This quarter’s results therefore only go to show that the economy is in a state of flux and that a sensible budgeting mantra is yet to be embedded in the British psyche”
To take control of your spending and borrowing, claim your free copy of IFA Promotion’s dedicated guide - Join the Savings Revolution - which looks at how you can budget to save more, and options of where to put any extra money. You can also obtain details of local independent financial advisers to talk though the most suitable savings options for you. Visit www.unbiased.co.uk/getsaving or call 0800 085 3250
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Notes to editors
*According to independent analysis of the most recent official figures conducted by independent agency, RAKM, on behalf of IFA Promotion. Data sources are Bank of England, British Bankers Association (unsecured borrowing + equity release, no mortgages), ABI, AITC and IMA. With detailed queries on this analysis call Paul Hersey on 01737 342863
Table 1
| Borrowing (ex mortgages) m | Savings m | ‘Savings Brake’ Pence borrowed for every pound saved |
2001 Q1 | 11,543 | 21,049 | 55p |
Q2 | 13,662 | 27,419 | 50p |
Q3 | 13,393 | 22,115 | 61p |
Q4 | 15,736 | 25,631 | 61p |
2002 Q1 | 18,190 | 23,087 | 79p |
Q2 | 18,560 | 28,655 | 65p |
Q3 | 21,434 | 20,993 | 102p |
Q4 | 20,026 | 27,045 | 74p |
2003 Q1 | 14,582 | 21,261 | 69p |
Q2 | 18,340 | 25,632 | 72p |
Q3 | 24,828 | 19,432 | 128p |
Q4 | 22,642 | 30,345 | 75p |
2004 Q1 | 20,602 | 19,430 | 106p |
Q2 | 19,994 | 29,135 | 69p |
Q3 | 19,662 | 24,266 | 81p |
Q4 | 17,316 | 32,885 | 53p |
2005 Q1 | 10,437 | 20,194 | 52p |
Q2 | 10,378 | 33,054 | 31p |
Q3 | 16,824 | 25,578 | 66p |
Q4 | 14,605 | 30,538 | 48p |
2006 Q1 | 4,928 | 31,033 | 16p |
Q2 | 18,571 | 38,563 | 48p |
For further information please contact:
David Elms | Chloe Mann/Holly Godden |
Chief Executive | Lansons Communications |
IFA Promotion | 020 7294 3681 / 020 7294 3674 |
020 7833 3131 |
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For expert comment or case studies from over 200 media-friendly IFAs, journalists should call IFA Promotion’s Media Services hotline on
020 7294 3682 or search online in ‘Media’ at www.unbiased.co.uk
1. Independent Financial Adviser Promotion
IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents around 9,000 firms of independent financial advisers across the UK and is sponsored by 31 leading financial institutions. In the past 12 months, over 530,000 consumers and businesses used IFA Promotion to find local independent financial advice.
IFA Promotion believes Independent financial advice should be:
Affordable. The option to take independent financial advice should be available, by right, to all- not just the wealthiest in society.
Convenient. IFAs should be available in the location of the consumer’s choice, wherever they live in the UK.
Transparent. It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.
2. Independent Financial Adviser Promotion’s sponsors
Aberdeen Asset Management | Mortgage Express |
Abbey | National Savings & Investments |
AXA Life | NatWest Business Banking |
Bright Grey | New Star Investment Funds |
BUPA Health Services | Norwich Union Life |
Canada Life Ltd | Prudential |
The Children’s Mutual | Scottish Equitable Plc |
Clerical Medical Investment | Scottish Life |
Defaqto | Scottish Life International |
Friends Provident | Scottish Widows Plc |
GE Life | Skandia UK Group |
GMAC Residential Funding | Standard Life Assurance Company |
INVESCO Fund Managers Ltd | UnumProvident |
Legal & General | Webline Limited |
London Mortgage Company | Zurich Intermediary Group |
Lincoln Financial Group |
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