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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:

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

On a ‘go forward basis’, Quilter oversees £ 111.6 billion in customer investments (as at 31 March 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset and single strategy 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; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Old Mutual Wealth’s multi-asset investment solutions business.

The Quilter businesses will be re-branded to Quilter over a period of approximately two years following separation from Old Mutual:

  • Intrinsic to Quilter Financial Planning
  • Private Client Advisers to Quilter Private Client Advisers
  • The Multi-Asset business to Quilter Investors
  • The UK Platform to Quilter Wealth Solutions
  • The International business to become Quilter International
  • The Heritage life assurance business to Quilter Life Assurance
  • Quilter Cheviot will retain its name.

On 19 December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals. 

Quilter is part of Old Mutual plc, a FTSE 100 group that provides investment, savings, insurance and banking. For the year ended 31 December 2017, Old Mutual reported an adjusted operating profit before tax of £2.0 billion. For further information on Old Mutual plc and the underlying businesses, please visit the corporate website at www.oldmutualplc.com.

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