According to a recently released report conducted by Standard Life, a culture that offers encouragement to consumers to develop and grow their savings accounts should be a requirement for the country. As a result, the savings and investments company has issued a warning to consumers in the UK that they need to adjust their attitude towards saving for the future or risk facing a so-called “perfect storm” of financial crisis.
The Edinburgh-based firm declared that at 51 percent, barely more than 1 out of every 2 adults in the UK are using financial products such as ISAs in an effort to put money away for the future. Additionally 28 per cent of Britons were found to choose actively not to participate in any savings programmes whatsoever.
Standard Life revealed the new figures to dovetail with not only the launch of financial planning week but also to highlight its new joint publication with Life Academy, a retirement planning charity. The new report, entitled “Everyone needs a plan,” has the goal of encouraging long-term financial planning activities, such as fixed-rate bonds, within the UK population.
Sandard Life’s pensions policy head, John Lawson, made a statement regarding the new publication in which he commented that a dramatic need to shift UK culture from its focus on borrowing to saving instead has been created by a rapidly aging population.
The jointly-authored report puts forward recommendations to consumers such as encouraging financial education efforts, developing individualised plans for their own money, and several other topics.
The publication also calls for an end to the currently complicated tax and savings system.
In related news, this past June, a separate report issued by Standard Life made the claim that many UK consumers had more interest in their cars than they did for their long-term savings accounts and pensions – if indeed they even had any.