20 February 2006

GOVERNMENT FAILING TO CONVINCE NATION TO SAVE, SAYS SURVEY

                              

 GOVERNMENT FAILING TO CONVINCE NATION TO SAVE, SAYS SURVEY

§                     43% UK adults say Government has made them less inclined to save, and a further 19% say savings initiatives have made no impact

§                     Child Trust Fund will do little to close savings gap: 60% would fritter windfall at 18 on living it up, only 5% would invest it

A survey of UK adults, conducted for IFA Promotion just days after Gordon Brown’s Budget speech, has recorded a firm thumbs-down for the Government’s long-term savings strategy so far*.  Whilst a third of UK adults say the current Government has made them more inclined to save for the future, 43% say they feel less inclined to save, and a further 19% say Government initiatives have made no difference to their savings behaviour.  Worse still, almost half (47%) of people on lower incomes say the Government has made them less likely to save.

David Elms, Chief Executive of IFA Promotion, commented, “Our survey, conducted just days after Gordon Brown’s Budget, shows UK savings apathy has reached chronic proportions, and that most people think the Government could do a much better job of promoting long-term saving.”

Asked to imagine what they would do with a £5,000 windfall at 18 years old, 60% said they would spend the money on luxury items, traveling or living it up, whilst just one in twenty (5%) would invest it in an ISA or pension and 9% would save it for a rainy day.  In addition the survey found:

• One in ten (10%) would put the money towards a deposit on a property
• 12% would use the money to fund further education
• 57% of those currently 15-24 say they would spend it on living it up and 26% saying they would save or invest (including property)   

Elms continued, “As things stand the Child Trust Fund will do little to reverse the nation’s widening long-term savings gap, since most people say they would blow any such windfall on luxuries or living it up.  Clearly we’re keen to see how the Government intends to guard against this, but we believe much more needs to be done now to educate people about the need to save for the future, and to give them access to independent advice on how best they can start doing this.”

To help those keen to close their personal savings gap, IFA Promotion has produced its How to Get Saving! factsheet, looking at why we need to save, how much we should be putting away, and the range of ways to do so.  People can call 0800 085 3250 or visit www.unbiased.co.uk for a copy and details of local independent financial advisers who can help plan the most suitable savings strategy  for them.

For details of local IFAs and a copy of the How to Get Saving! factsheet, call IFA Promotion’s hotline on 0800 085 3250 or visit www.unbiased.co.uk

-     ends –

For further information, please contact:

David Elms                                        or                     Liz Willder / Richard Winder

Chief Executive                                                           Lansons Communications

IFA Promotion                                                             020 7490 8828

020 7833 3131                                                            lizw@lansons.com

For expert comment or case studies from over 175 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 28 leading financial institutions. In 2002, over 300,000 consumers and businesses used IFA Promotion to find local independent financial advice.

 

2.       Independent Financial Adviser Promotion’s sponsors

AMP NPI	Norwich Union Life
AXA	Old Mutual Asset Managers
Barclays Global Investors Funds	Prudential
Bright Grey	Scottish Equitable Plc
BUPA	Scottish Life
Canada Life	Scottish Mutual Assurance Plc
Children’s Mutual	Scottish Provident
Clerical Medical Investment Group	Scottish Widows Plc
Eagle Star	Selestia
Friends Provident	Standard Life Assurance Company
GE Life	Swiss Life (UK) Plc
INVESCO Fund Managers Ltd	Skandia UK Group
Legal & General	Winterthur Life UK Ltd
National Savings & Investments	Zurich Life Assurance Company

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