It seems that the Government can do nothing right at the moment. Even its plans to encourage the country to save money appear to have had the opposite effect.
Ever since the emergence of the ‘savings gap’ the Government has tried to encourage saving for the future. However, according to IFA Promotion, the organisation that promotes independent financial advisers, savers are now even more reluctant to do so.
In their survey, only one third of those surveyed said the Government had encouraged them to save for the future. Almost 45% said the Government had made them less likely to save. Whilst the survey was being conducted, people were also asked what they would spend a £5,000 windfall on at age 18. The results were fairly shocking with 60% stating they would blow the money, basically on partying and travel.
David Elms is Chief Executive of IFA Promotion. He said: “Our survey conducted just days after Gordon Brown’s budget shows that UK savings apathy has reached chronic proportions”. Barclays conducted a similar survey, finding that 53% of the adults surveyed were too busy to organise their finances. Barclays head of investments and savings said: “If these issues are not addressed, many people are going to find themselves seriously under-provided for in retirement”.
Our View
Saving for the future is important if you want to live a certain lifestyle. However, saving every penny and not living is not the way to go. Only save what you can afford and make sure you do it regularly.
You are more likely to save for the longer term if you still have a life but save as well.