Nationwide Shows Importance Brits Place On Savings
As the credit crunch continues to clamp down on consumers’ ability to manage their finances, rising numbers of Britons are looking to put cash away for later life.
Such is the assertion of Nationwide in which a recently released piece of research indicates that just under three-quarters (74 per cent) of people believe that on the whole it is important to save money for the future. Meanwhile, 71 per cent of respondents thought it was personally important for them to save over the course of last month. In addition, the financial services provider revealed that the importance placed on saving for the future rises as consumers get older. Just under two-thirds (65 per cent) of 16 to 24-year-olds believe saving is important, in comparison to 71 per cent of 55 to 64-year-olds. However, this proportion rises to 81 per cent of over-65s.
In taking the time to put money away into savings vehicles, it may be possible that consumers are able to manage various constraints on their spending in later life. This could see them be able to meet the cost of repairs to their home, repaying a higher than expected bill and making payments on personal loans and other spending commitments.
However, despite the importance placed on making provisions for the future, only half of Britons were indicated as saving money on a regular basis. Meanwhile, 57 per cent were shown to be afraid they are not putting as much cash away as they think they should. Furthermore, research from the firm showed 49 per cent think that the current difficulties being experienced in the economic sector means that now is a bad time to save money, a rise from the 40 per cent who thought so in April.
Commenting on the figures, Matthew Carter, director for savings at Nationwide, said: “As food and fuel prices continue to rise and people feel gloomier about the economy, more consumers think it is a bad time to save. This is a shame given many savings providers are offering highly competitive and attractive rates at the moment and illustrates the current squeeze on consumers’ ability to save. The products available mean it’s a good time for savers so it’s incredibly unfortunate that would-be savers haven’t the spare money to put aside. It is encouraging, however, that three-quarters of people think saving is important, although it is disappointing consumers don’t feel they can afford to save as much as they need to.”
For those consumers concerned about their ability to put money away for the future, taking out a debt consolidation loan may be of assistance. In selecting this kind of loan, borrowers could find that they can merge numerous constraints on their spending into a single low-cost monthly repayment. This may leave them with more disposable income, cash which could then be invested into a savings account. Getting a loan for such purposes might be of particular help after a recent study by Engage Mutual Assurance reveals that a significant number of consumers are looking for a financial windfall from a relative in order to help manage the rise in living costs which they are facing.
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