The International Longevity Centre UK has released results of their survey that claims the UK savings gap is actually lower than the stated £27bn. The ILCUK has queried some of the figures used by the Government when calculating the gap but do not give an indication of how much the gap has been overstated.
According to the research, consumer debt is now 120% of post-tax income. But, assets held by individuals have also increased. Apparently, people less than 50 years old own 75% of all debt. People over 50 tend to hold 70% of all assets.
Our View
The figure of £27bn has been banded around for a long time. Whilst these people claim the gap is lower, others have claimed it to be as much as £56bn. Whatever the savings gap, there is one and the Government need to address the issue in greater depth than they have been doing.
Encouraging the population to save is not rocket science. Simpler products and greater incentives, knowing human nature as we all do, would work.