ABI: New ABI research shows consumer confidence in the benefits of saving continuing to fall

ABI: New ABI research shows consumer confidence in the benefits of saving continuing to fall

ABI: New ABI research shows consumer confidence in the benefits of saving continuing to fall

Nearly three-quarters of consumers feel that the benefits of saving have fallen over the last year, according to new research published today (23 January) by the ABI (Association of British Insurers). The research highlights the need for a new savings culture in Britain, as consumer pessimism on the benefits of saving continues to grow.

The ABI’s Savings and Protection survey of 3,000 adults carried out by YouGov shows that during the last quarter of 2008:

– The attraction of saving continued to fall. Only 7% felt that the benefits of saving had risen over the past year, compared to 15% in the same survey in the third quarter of 2008.
– Nearly three-quarters (73%) of consumers felt that the benefits of saving had fallen over the last year, compared to just over half (53%) in the third quarter.
– Consumer confidence in the economy remained low: 7 out of 10 people believe that the UK economy will deteriorate further during 2009.

Dr Rebecca Driver, the ABI’s Director of Research and Chief Economist, said:

“The current economic climate vividly highlights the dangers of too much debt – the country needs to develop a healthier approach to saving. Yet our research shows that consumers are becoming increasingly sceptical about the benefits of saving. Increasing ISA limits and bringing forward automatic enrolment into existing workplace pension schemes will help, and we urge the Government to take action on these issues”.

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Notes for Editors

1. Enquiries to:
Jonathan French 020 7216 7392 (Mobile: 07958 330 480)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler-Coyle 020 7216 7415 (Mobile: 07968 364 302)

2. The ABI’s Quarter 4 Savings and Protection Survey can be viewed at www.abi.org.uk from 23 January 2009.

3. The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU. They control assets equivalent to a quarter of the UK’s capital. They are the risk managers of the UK’s economy and society. Through the ABI their voice is heard in Government and in public debate on insurance, savings and investment matters.

4. An ISDN line is available for broadcasts.

Copies of all ABI news releases, together with other information from the Association, can be seen on our website http://www.abi.org.uk