A national savings strategy is needed to "integrate saving throughout consumers' lives", according to TISA (the Tax Incentivises Savings Association), which is calling on the Government for help.
TISA has outlined its vision of a 'Savings for Life' culture to the HM Treasury in its Pre-Budget submission, and it explains that encouraging Britons to save for the future can be achieved by "adopting a joined-up approach" to the savings needs of individuals and families.
The proposal from TISA brings to attention five essential suggestions for making saving a part of every day life for Brits, such as developing a workplace ISA
, whereby the employer makes a contribution and there is limited access, much like a Child Trust Fund
Auto-enrolment into a Workplace ISA scheme, or an Employer based Stakeholder Pension, should be achieved as soon as possible, TISA said.
It also recommends linking Save as You Earn schemes – which allow employees to save towards buying shares in the company, or withdraw the cash at the end of the term – with the new Saving Gateway to ISAs, a Government scheme for low-income families which matches each pound they save.
"The stark reality is that the savings ratio is at an all-time low and this must be addressed by all of us in the industry and by Government." said Tony Vine-Lott, director general of TISA. "I believe that by enabling the consumer to see how options for savings link together and by increasing the use of the ISA model we have an opportunity to make a real difference very quickly."
He continues to say that when combined with the existing range of savings accounts
and other products already on the market – such as Child Trust Funds and ISAs – the recommendations will encourage Brits to prepare for life's big events, such as buying a home, starting a family, and retirement.
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