#SavingBetter: British households are not saving enough. That's no shock - but the figures are staggering:
26.5 million working age people in Britain are not saving enough to meet their rainy day or retirement needs.
#SavingBetter -
Even those who do save are losing out...
#SavingBetter - nearly 8million people in Britain hold (a total of £200bn) more than they need in cash assets.
"Excess" is assessed as holding more than three months of income in cash assets.
#SavingBetter: Across GB - while many don't save at all, some are holding £200billion more than advised in cash assets
#SavingBetter: excess cash savers have lost £8bn in real terms over the last five years because real interest rates have been consistently negative. Over that period - returns on cash have been -4%.
#SavingBetter - returns on a wide range of other asset classes would have given savers with excess cash far higher returns.
#SavingBetter - increasing asset ownership across all savers in Britain could come with huge benefits to households and business.
#SavingBetter - Government & regulator policy is creating a significant cash bias. Change in ISA policy in 2013/14 increased holding in cash...
And investment warnings and the Financial Services Compensation Scheme (FSCS) also drive a bias towards holding assets in cash.
#SavingBetter: The Govt & FCA should undertake a review of saving and investment incentives & regulation to asses the impact on asset allocation.
#SavingBetter: creating an asset-owning democracy would increase living standards & wellbeing across the UK.
#SavingBetter: Govt should introduce £30billion of Britannia Bonds to market its sovereign wealth & infrastructure funds to retail investors. Previous attempts to do this have been massively oversubscribed.
#SavingBetter: Govt should introduce Fund at Fifteen to give each 15 year old a financial stake (£1,500) in Britain and financial education for the future.
This should be paid for by reversing recent increases in ISA allowances that lifted the limit (£20,000) to a level that benefits only the very wealthiest, who would already be saving.
See the full report here: http://www.smf.co.uk/publications/saving-better/
Or contact matthew@smf.co.uk
