Half of Brits vow to boost savings accounts in 2009

08 January 2009 / by Rachael Stiles
Almost half of British consumers have made a New Year's resolution to save more this year, according to research from the Association of British Insurers, and more than 50 per cent said they are more likely to save because of present conditions in the economy.

The research found that 47 per cent of Brits planned to save more in 2009, while 51 per cent said they will feel more pressure to build up their savings accounts in order to help them weather financial difficulties as a result of the current economic climate.

In its State of the Nation's Savings research, the ABI found that more than 13 million working adults in the UK are not saving enough in preparation for their retirement, so it is urging people to make more of an effort to put money aside for the future.

But in order for people to save more, there needs to be incentive, the ABI says; the Government needs to introduce measures which will help people to save, such as enabling automatic enrolment into workplace pension schemes as soon as possible.

The ABI also believes that the limit which can be invested in an ISA each tax year should be increased from the current limit of £7,200 to £10,800, so that people can make more of their tax-free savings.

"Our research shows that many people in Britain want to save more for the future – it’s good news that even in this difficult economic climate, public attitudes are shifting towards saving." said Stephen Haddrill, director general of the ABI.

"People want to save more – and the Government has a golden opportunity to help them by increasing ISA limits and making ‘auto-enrolment now’ its New Year’s resolution."

Conservative Leader David Cameron has also been speaking out on behalf of savers, the so-called 'innocent victims' of the credit crisis, calling for a return to a culture of saving, not spending.

Mr Hadrill welcomes Mr Cameron's recognition of the importance of savers to the economy, and urges the Government to bring in measures which encourage a savings culture.

"With saving at the lowest level for 50 years, action is needed now." he said. "To help the UK develop a new savings culture, there needs to be a package of measures aimed at all taxpayers, including encouraging insurance that helps families protect their homes and savings."

© Fair Investment Company Ltd