“Generation Spend” Still Refuses To Get Saving! (Consumer)

Figures out today from Unbiased.co.uk, the website promoting the benefits of independent financial advice, should encourage consumers to kick their spending habits and to Get Saving! Although nearly a third of British consumers are currently able to increase the amount they save, ever increasing numbers are blaming their enjoyment of spending for not actually doing so.

Following the recent series of interest rate rises by the Monetary Policy Committee (MPC), Unbiased.co.uk is urging consumers to take advantage of the potential benefits of an interest rate rise and to start saving their money – now!  However, about four million people enjoy spending their money too much to increase the amount they save (a massive increase of 75% on last year) and approximately one third of the British adult population haven’t changed the ways they manage their finances in the last twelve months. Unbiased.co.uk’s profile of a typical member of ‘Generation Spend’ is that they are more likely to be female, aged between 25 and 44, and live in the South East of England, although a large proportion also reside in the North West.

David Elms, Chief Executive of Unbiased.co.uk comments: “The MPC’s announcement should be treated less as blanket bad news for the heavily indebted UK consumer and more as a wake up call to save more and spend less. The interest rate rise is minimal, but has taken rates to their highest level for six years. Unbiased.co.uk hopes that this will act as a trigger for people to finally take their heads out of the sand and act logically when it comes to their future financial security. At the very least, it should deter people from unnecessary spending and the temptation of taking on new debt, but what we really need is a long-term commitment to saving. With the prospect of increased rates of return, now is an ideal time to start.”

The first step to Get Saving! is to tackle bad budgeting habits, which are currently to blame for the UK’s snub of savings. Fewer consumers than ever (45% of Brits) say they are actively saving in any form, and define themselves as ‘active savers’, irrespective of borrowing. Although 28% of people indicate that they plan to save more in the next 12 months, a similar proportion admit their spending plans are curtailed by the desire to consume, rather than save.

Elms concluded: “The prevalence of ‘Generation Spend’ is now beyond a joke. Consumers are taking on debt at a time when debt is more expensive than it has been for six years and are endangering their financial futures by doing so. Consumers need discipline and foresight in order to make their money work hard for them. If you need help with budgeting or guidance as to the best savings vehicles for your needs, a visit to your local independent financial adviser is a step in the right direction.”

Unbiased.co.uk offers consumers a range of information and interactive tools at www.unbiased.co.uk/getsaving, to help them take financial control.  Visitors can also obtain details of local IFAs who focus on investment and saving.

-ends-

* The Get Saving! 2007 report was produced for Unbiased.co.uk by RAKM, and is partly based on an analysis of Inland Revenue, ONS, DWP Family Resource survey, Bank of England and ABI data along with a specially-commissioned face-to-face consumer survey of 2,000 UK adults (16+), conducted by BMRB during October 2006.  With detailed queries on the report, call Paul Hersey at RAKM on 01737 216 940.  To view and download previous Get Saving! reports visit www.unbiased.co.uk/getsaving 

For further information please contact:

David Elms

Nicola Hussey/Anna Schirmer

Chief Executive

Lansons Communications

Unbiased.co.uk

020 7566 9718/ 020 7294 3605

020 7833 3131

 

For expert comment or case studies from over 200 media-friendly IFAs, journalists should call unbiased.co.uk’s Media Services hotline on

020 7294 3682 or search online at www.unbiased.co.uk/media

 

1.      Independent Financial Adviser Promotion

Unbiased.co.uk is the consumer brand of IFA Promotion, the organisation 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, incorporating over 17,000 registered individuals. These individuals hold over 20,000 incremental qualifications which are each individually verified by the awarding body. IFA Promotion welcomes the prominent display of incremental qualifications and further developments into the credentials of independent financial advice. 

IFA Promotion is sponsored by 29 leading financial institutions, and in the past 12 months, over 600,000 consumers and businesses used unbiased.co.uk to find local independent financial advice.

IFA Promotion believes Independent financial advice should be:

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