Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • July 2013
07

Savings rate hit by downturn, survey finds

Open-access content Tuesday 23rd July 2013 — updated 1.23pm, Tuesday 5th May 2020

More than a quarter of the population has stopped saving since the financial crisis in 2008, a poll by pension provider Now Pensions has warned.

It said 28% of the 2,000 people it surveyed stopped saving when the downturn struck and have not saved since.

Among them, 74% felt that the country has no savings culture and 32% had less than £500 in savings while 15% had none.

The main factors blamed for this were frozen wages and rising bills, though 10% saw no purpose in savings while interest rates are so low.

Savings had fallen significantly among the baby boomer generation - those aged 51-71 - where 32% had stopped saving and 11% had no savings.

By contrast among 'generation Y' - those aged 18-31 - 38% said they were saving money.

The most popular solution to the lack of a savings culture was better financial education in schools, mentioned by 58% of respondents, followed by 22% who suggested workplace education.

Just over one-third wanted the Bank of England to raise interest rates, 18% called for a cut in VAT and 17% wanted higher cash ISA limit.

But 53% thought changes to workplace pensions with auto-enrolment would play a big part in helping younger generations to have a more financially secure retirement.

Now Pensions chief executive Morten Nilsson said: 'With low interest rates and the rising cost of living, saving has inevitably taken a back seat for many. But the recession isn't solely to blame for the lack of a savings culture in Britain.

'As credit has become more accessible and acceptable, the motivation to save has diminished. To transform this, more needs to be done to help people recognise the value of saving, for both their short and long-term financial security.'

He said changes to workplace pensions would encourage savings so long as employers stressed the benefits of staying opted in to the scheme.

This article appeared in our July 2013 issue of The Actuary.
Click here to view this issue
Filed in
07
Topics
Global

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Pensions Actuarial Analyst

London, Midlands, Scotland
£Market Competitive
Reference
143788

Senior Manager/Director level roles - Life insurance

Stirling
Generous salary with excellent bonus and benefits
Reference
143787

Reinsurance Pricing Actuary

London (Central)
£60-90K depending on experience
Reference
143786
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ