Media comment: IFS report on household wealth and attitudes to savings

Thursday 19 November

On the IFS report on household wealth and attitudes to spending, John Penberthy-Smith, Customer Director for the Money Advice Service comments:

“The IFS research raises important challenges around ensuring that people are prepared for income shocks and unexpected life events. The report highlights the huge variation in attitudes and approaches to saving across different population groups. Importantly, it shows that just under half the adult population are not actively saving.

Recent research of 5,000 people by the Money Advice Service found that 24% of working age people never or rarely save money and a quarter (25%) say they currently have no savings. Savings are crucial when it comes to ensuring people can cover unexpected costs, avoid unnecessary use of credit and achieve their financial goals.

“Our own research demonstrating a worrying state of the UK’s financial capability has led to the launch of the UK Financial Capability Strategy: a 10 year plan to help consumers make the most of their money, plan ahead and avoid financial difficulties. This is a vital challenge that we must address through collaboration between government, regulators, industry, third sector and other organisations with a role to play in driving change.”

ENDS