Tomorrow, the Office for National Statistics (ONS) will announce the latest GDP figures. They are expected to show continued growth in the economy, adding to the rise in consumer confidence and spending. Despite this, our research shows consumer confidence is not reflected in Britons’ attitude to saving.
Our survey of over 2,000 people shows that Britain is still a nation of cautious savers. In fact, 71% of people describe themselves as balanced, cautious or defensive when talking about saving. Only 11% of people asked said they planned to take more risks this year, despite the economy improving. 60% said they would take a cautious approach to saving for the rest of the year.
This gap in attitudes between consumers and investors is part of a worrying trend of under-saving in the UK. Our research also shows that most people save less than £100 per month and that only 10% are very confident they will save enough money to live comfortably in retirement. If the UK is to avoid a savings crisis, we need to change these attitudes.
Commenting on the research, Daniel Harrison, Senior Partner at True Potential, said:
“The economy is showing real signs of improvement but despite this, our research shows, savers remain cautious with their investments.
“The GDP announcement is really positive news for the economy and now is the time for investors to consider alternative ways to saving in cash alone when looking to invest their money. Currently people are cautious with their investments because they have lost trust with the financial sector.
Even with many Savings Accounts and Cash NISAs offering returns below the rate of inflation, investors remain wary of Stocks and Shares alternatives. The challenge is to take the good economic news that consumers have enjoyed and boost the confidence of investors too.
The full findings of our research are available in our White Paper, ‘Tackling the Savings Gap’.
You can read the full press release here.