Climate change - for the better, if you're saving

15 January 2007
The overall climate for consumer saving has improved significantly over the last six months, the ABI/Populus Savings Panel survey of 150 UK insurance industry executives has found.

Nearly half of the panel's members believed the savings environment in Britain had improved, while 63 per cent of them were optimistic about prospects for the savings industry over 2007.

"Reforms to the pensions and savings system, including the recent ISA changes, present good opportunities for savers in 2007," commented the ABI's director general, Stephen Haddrill.

The pensions white paper, outlined in November, makes provision for the creation of the National Pensions Saving Scheme.

According to 40 per cent of panel members, three successive quarter-point hikes to the interest rate from the Bank of England have encouraged consumers to hold onto their savings.

But the executives agreed that the climate for saving could still be better given the fall in personal taxation from 16 to 24 per cent, which could deter many from putting money aside.

To read more about savings and investments, click here.

track© Adfero Ltd