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Press comment: Household Savings Ratio

31/03/2017

If you are covering the monthly economic update from the ONS, which confirms that the Household Savings Ratio fell to its lowest since the early 1960s, please see the following comment from Rachael Griffin, financial planning expert at Old Mutual Wealth:

“These figures should provide a timely wake-up call for those that are thinking of spring cleaning their personal finances at the end of the tax year. While some people may be pleased that household spending is buoyant, for families and individuals it is really important to prioritise financial security over short-term spending.

“A worrying number of households do not have any sort of cash savings or insurance to protect against financial difficulty if life throws unexpected challenges at them. Building up a cash buffer to cover at least three months of essential spending is a sensible first step. Once this buffer is in place, it is then possible to look further ahead and build a financial plan for the future with long-term investments.

“Research* we have conducted with YouGov shows that today’s working-age households are under-saving compared to older generations and are at risk of experiencing a less prosperous retirement as result. Almost two thirds of 30-45 year olds say they are worried they won’t be able to afford a decent retirement, with just under 80% saying it is because they can’t afford it. This feeling of unaffordability isn’t likely to disappear and if anything could get worse as today’s stats show incomes are going down and spending is going up.

Rachael Griffin“Planning can help people get to grips with their financial situation and prepare for their future. There is plenty of help available for people concerned about their savings, from government resources such as PensionWise or The Money Advice Service, to charities that specialise in helping people budget and manage debt, right through to professional financial adviser that can help build a personally tailored financial plan to give total peace of mind and security about your financial future.”

 

*A nationally representative YouGov survey of 3,000 UK individuals, 2016.   

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076tim.skelton-smith@omwealth.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.1 billion in customer investments (as at 30 September 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.