One expert has recently said that Brits with savings accounts often don’t have the ability to make them grow due to sometimes crushing debt from items such as credit cards.
Money education charity Credit Action’s associate director Joanna Parsley recently remarked that many UK consumers are facing an uphill struggle in the wake of the worldwide economic recession. Mr Parsley commented that despite the number of personal and business bank accounts being taken out has risen lately, the average British family’s credit commitments still dwarf their savings.
In the first three months of 2011, the average savings balance in the UK for adults declined by £100 to £1,783 according to a recently published consumer savings report from ING Direct. Despite the decline, Ms Parsley was insistent that it was key for Britons to properly budget and monitor their spending habits currently due to still-climbing unsecured debt levels.
In related news, pensioners could stand to gain additional income by using savings accounts to bolster their retirement earnings, according to one chartered financial planner.
Martin Bamford, who works for financial consultancy firm Informed Choice, has recently gone on record by urging Brits approaching retirement to think about more than just their pensions.
Mr Bamford stated that soon-to-be pensioners should make plans as to secure more than one income source once they retire from work. Any and all sources of money should be considered to supplement your income, the financial planner added.
While a significant percentage or people view their home as a key component of their pension provision according to recently published research by Friends Life, a reliance on the volatile property market could leave many with financial losses following the sale of their home. In light of this this, Mr Bamford remarked that it’s never too early to begin retirement savings plans.