A savings culture must be restored in the UK Go compare with our comparison table

A savings culture must be restored in the UK

28 May 2010 / by Lois Avery

Savings should be encouraged by the government, according to a new report out today.

The Association of Independent Financial Advisers (AIFA), and  AEGON UK, the life assurance and pensions company, have urged the new Government to take steps to rebuild Britain's savings culture.

Figures show that 13 million people in the UK are saving inadequately or not saving at all.

Eight practical measures have been outlined by in the organisation’s white paper document suggesting how they can encourage people to save in an effort to boost the UK economy.

They suggest that the government, which is due to announce its deficit tackling budget in three weeks time, should making saving easy by introducing the facility for people to ask for ‘Save back’ instead of ‘cash back' .

Also suggested in the paper were plans suggesting children should also be taught how to save for their futures from a young age. And a savings network should be created within the workplace or other groups such as extended family, friends or those with a common savings goal to reinforce positive attitudes to saving . They suggest that this would encourage a ‘weight-watchers’ attitude to saving by offering support.

Chris Cummings, director general, AIFA says: “Given the current economic challenges, we believe it is vital the new Government acts decisively to restore a savings culture in the UK. Individually, and as a nation, we need to rediscover thrift and true prudence.  While politicians of all parties agree that saving is a good thing, no one has set out exactly how they would encourage it.

"This White Paper therefore brings fresh thinking to the debate and sets out a policy approach based on how real people think and behave. We must ensure that people have the knowledge and confidence to save for their financial future. Otherwise, as a society, we will all pay a heavy price."

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