Saving Goes Into Reverse - For Every Pound Saved, We Borrow 119 Pence

For all those nursing a financial new year headache after excessive seasonal spending, it will come as no surprise that new figures from IFA Promotion, the organisation promoting the benefits of independent financial advice, show that Britain has fast become a nation of financial schizophrenics - according to independent analysis of the most recent official figures*, for every pound we save, we are borrowing £1.19!

This time last year our borrowing cancelled out any savings being made. However this year the situation is worse - in effect the ‘savings brake’ (the ratio of how much we are saving compared with how much we are borrowing, not including mortgage debt), has now gone into reverse.

David Elms, Chief Executive of IFA Promotion commented, “These figures show we are a nation of financial schizophrenics. Although we’re saving a similar amount to this time last year, we’re borrowing billions of pounds more, so on balance we’re stripping back our long term financial security. This situation has only been made worse in the wake of Christmas and New Year when our ability to overspend was rife.

“If people are confused how to manage their money better, they should consider visiting a local independent financial adviser who can talk them through the options that best suit their individual needs”.

To help consumers take control of their spending habits, IFA Promotion has produced a dedicated guide Join the Savings Revolution, which looks at why we need to save and 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-

For further information, please contact:

David Elms Liz Willder / Richard Winder

CEO

IFA Promotion Lansons Communications

020 7833 3131 020 7294 3677

david@ifap.org lizw@lansons.com / richardw@lansons.com

* Is thrift a thing of the past? report was produced for IFA Promotion by RAKM, and is partly based on an analysis of Inland Revenue, ONS, DWP Family Resource survey, Bank of England and ABI along with a specially-commissioned face-to-face consumer survey of 2,000 UK adults (16+), conducted by BMRB during August 2003. With detailed queries on the report, call Paul Hersey at RAKM on 01737 216 940. For a full copy call IFA Promotion’s Media Services hotline on 020 7294 3682, or download a pdf version from www.unbiased.co.uk/getsaving

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 over 10,000 firms of independent financial advisers across the UK and is sponsored by 26 leading financial institutions. In 2003, over 330,000 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

AXA	National Savings & Investments
Bright Grey	Norwich Union Life
BUPA	Old Mutual Asset Managers
Canada Life	Prudential
Children’s Mutual	Scottish Equitable Plc
Clerical Medical Investment Group	Scottish Life
Eagle Star	Scottish Mutual Assurance Plc
Friends Provident	Scottish Provident
GE Life	Scottish Widows Plc
GMAC Residential Funding	Selestia
INVESCO Fund Managers Ltd	Standard Life Assurance Company
Legal & General	Skandia UK Group
Mortgage Express	Zurich Life Assurance Company

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Saving Goes Into Reverse - For Every Pound Saved, We Borrow 119 Pence

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