With fewer Brits using savings products such as fixed rate bonds or ISAs in the wake of the global recession, one expert has stated the savings culture of the UK is on the decline.
Credit Action associate director, Joanna Parsley, recently stated that the decline of the UK’s savings culture stems from a lack of available funds. Ms Parsley stated that the majority of UK savers don’t have any spare cash to devote to personal or business bank accounts in order to save for the future.
There are indications that this trend will not only effect those who are struggling to make ends meet but more affluent Brits as well. Ms Parsley’s comments come on the heels of recently published research that discovered the amount invested or saved every year with households in which £100,000 or more was earned every year is expected to decline by 10 per cent in 2011.
The research also discovered the on average a bit over £2,000 will be added to savings products per saver over the coming year.
Ms Parsley stated that a significant proportion of people recognise how important it is to save money for the future given the current economic landscape. The industry expert also stated that most Brits see having some savings as useful when it comes to paying for unexpected events and costs.
However she added that savings culture has grown less important since many consumers do not have much cash to spare on a monthly basis. This has left many consumers feeling as if they are unable to save at all.
This follows Willis Owen’s Alan Easter’s comments regarding ISAs in the wake of the Bank of England’s MPC to keep the base rate at its historically low 0.5 per cent level. Mr Easter urged savers to take full advantage of their yearly allowance.