Could the Savings Revolution Finally Have Arrived?

Confidentially search for details of independent financial advisers close to where you live or work from around 9,000 IFA locations UK-wide.

·        For every pound saved, we’re borrowing 27 pence, compared to 69 pence this time last year, reveals IFA Promotion’s Savings Brake data*

·        Budgeting turnaround led by rate changes not sudden epiphany, warns IFA Promotion

2005 is proving to be the year of the saver, according to new figures from IFA Promotion, the organisation that promotes the benefits of independent financial advice. Saving figures have reached their highest levels and borrowing figures have tumbled to their lowest since IFA Promotion’s quarterly Savings Brake report (the ratio of how much we are borrowing, not including mortgage debt, contrasted with how much we are saving) began in 2001. New saving is now outweighing new borrowing by the largest ratio this century: for every pound saved we are borrowing just 27 pence, compared to 69 pence this time last year.  [See page 2 for historical Savings Brake trends]

IFA Promotion’s analysis of a range of saving and borrowing data reveals evidence of a net repayment of credit card debt and record levels of new savings with banks and building societies*, all of which suggests we are finally beginning to control our borrowing and start saving.

David Elms, Chief Executive of IFA Promotion, commented, “Increased commitment to regular savings is clearly good news, but it stems far more from recent interest rate moves than any sudden savings epiphany.  To avoid a repeat of the last few years of rampant consumer debt and total neglect of saving, we need to see an overall shift in consumers’ ability to budget.  People need to make the link between their spending, borrowing and saving behaviour and their long-term financial security.”   

To help people take control of their finances, IFA Promotion has produced a free 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. Call 0800 085 3250 or visit www.unbiased.co.uk/getsaving.

-ends-

*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 216 940.

For further information please contact:

David Elms                                               Liz Willder/Holly Godden

Chief Executive                                        Lansons Communications

IFA Promotion                                          020 7294 3677 / 020 7294 3674

020 7833 3131

    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 Services’ 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

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