New Figures Show 2005 Could Be The Year Of The Saver

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·         Buoyant saving levels provide hope for UK finances, but still no room for complacency, says IFA Promotion

·         For every pound saved we are still borrowing 57 pence

2005 could be the year of the saver according to new figures from IFA Promotion*, the organisation that promotes the benefits of independent financial advice. IFAP’s annual Get Saving! report shows savings outweighing borrowing by the largest ratio since 2001. Gordon Brown announced a 50% increase in personal wealth in his recent budget speech, and with reports showing a slump in high street spending, it seems people are embracing the saving habit.

However IFA Promotion’s ‘savings brake’ (the ratio of how much we are borrowing - not including mortgage debt - compared with how much we are saving) shows that for every pound we are saving, we are still borrowing 57 pence. Therefore well over half of our savings are negated by the new debt we are continuing to take on.

The Get Saving! figures also showed that:

• At the beginning of 2004 we were actually borrowing more than we were saving - £1.05 pence borrowed for every pound saved on average.
• Although savings are now at their highest level for five years, new borrowing is still substantial – higher than at any time in 2001 and similar to the same time of year in 2002 and 2003. 

David Elms, Chief Executive of IFA Promotion, commented, “These figures should be treated with cautious optimism. Although it’s good news to see that savings are significantly higher than new borrowing, the saving’s brake shows that we are still contradicting ourselves financially. Hopefully 2005 will see a reduction in the high levels of consumer debt that have swept the country in recent years and an increase in regular savers. With interest rates still historically low, savers should visit a local independent financial adviser who can suggest the best ways to get high returns on their investments.”

To help people take control of their spending and borrowing, 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 ONS (average earnings), Bank of England (unsecured debt levels), industry data and consumer research (number of loans and credit cards held).  With detailed queries on this analysis call Paul Hersey on 01737 216 940.

For further information please contact:

David Elms                                               Chloe Merriman

Chief Executive                                        Lansons Communications

IFA Promotion                                          020 7294 3681

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 10,000 firms of independent financial advisers across the UK and is sponsored by 31 leading financial institutions. In 2004, over 440,000 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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