Savings Metrics: Consumer Attitudes towards and Behaviour in the UK Savings Market:

Savings Metrics: Consumer Attitudes towards and Behaviour in the UK Savings Market

Published Date: September 2007

Published By: Finaccord Ltd.

Page Count: 120

Order Code: R3434-89

Questions About This Report

E-mail a Colleague

Printable Page

Fax Your Order

Description

Table of Contents

Search Inside
this Report

Similar
Products

0.0 EXECUTIVE SUMMARY: No notice interest-bearing deposit and savings accounts are held by over 50% of consumers…; …. although a significant percentage have no short to medium-term savings whatsoever…; …. with the proportion lacking pension or retirement savings increasing to almost twice this level; On average, a majority of the wealth of consumers in the UK is tied up in property ownership; Penetration rates for different savings products vary radically by demographic and life stage; Over a third of consumers claim to save in a disciplined manner and on a regular basis…; … although only a minority appear to take any external advice when it comes to savings decisions.; On-line financial aggregators and brokers are achieving an increasing profile among consumers; A clear majority of cons. agree that providing for retirement is an important motive for saving…; … although many, especially those in younger age groups, face other more pressing priorities; Cons. display high levels of insecurity with regards to the adequacy of their retirement saving…; … a degree of concern that diminishes only slightly among those aged between 55 and 64; 7% of consumers believe that they will need savings in excess of £1 million in today’s money; Most consumers are not necessarily averse to the concept of compulsory retirement savings...; … although many appear to be pinning too much on the future value of their state pension…; … and property ownership is beginning to rival conventional pensions as a retire. saving option; Consumers display a relatively high willingness to continue part-time work following retirement; The results of the research point to fast-changing consumer savings behaviour in the UK; … with increasing prop. to invest in property throwing up both challenges and opportunities

1.0 INTRODUCTION: Research rationale; The study offers unique data concerning penetration rates for 23 different savings products…; … as well as analysing cons. propensity to acquire the products according to their life stage…; … and delivering a number of original insights into their approach to retire. saving, in particular; Research sample; Finaccord; Savings Metrics and other consumer-focused studies; UK affinity and partnership marketing publications; IPT / Tpoll

2.0 SAVINGS OVERVIEW: Introduction; Consumer holdings of residential mortgages and non-mortgage debt; Residential mortgages; Over one quarter of survey respondents own property outright with no outstanding mortgage; Among respondents with a mortgage, the average outstanding debit is in excess of £80,; Non-mortgage debt; Just over a half of the 1,550 survey participants hold some form of non-mortgage debt…; … with almost 20% of these burdened with unpaid loans in excess of £20,000; Consumer holdings of savings products; Short-term and medium-term savings products; Only three types of savings product are held by in excess of a quarter of consumers…; … with the figures varying only a little when calculated on an adjusted basis; Over a quarter of respondents hold short-term and medium-term savings in excess of £20,000….; … with the average value of holdings growing in line with increasing age and household income...; Pension and retirement savings products; Well over 40% of respondents belong either to a company or occupational pension scheme; Individual and group SIPPs, on the other hand, remain very much a niche market; 44% of respondents state that they hold no funds whatsoever in pension or retirement products…; … and a further significant percentage report savings of below £20,000 allocated to this category .; Average retirement savings held by respondents aged between 55 and 64 are just £40,980; Number of relationships with companies offering savings products; Over 10% of respondents maintain relationships with five or more providers of savings products...; Property ownership (including buy-to-let); A small percentage of respondents own either a second home or property acquired for rental; 25% of respondents own property with a gross value in excess of £300,000; Sources of information and advice influencing savings decisions; Consumer awareness of on-line financial aggregators and brokers continues to rise; Degree of self-direction when making savings decisions; A high proportion of respondents claim to be totally self-directed when it comes to savings…; … although this percentage declines somewhat in line with increasing household income; Importance of general motives for saving; Well over a half of respondents agree on the importance of saving for retirement generally…; … although those aged under 45, in particular, often have other more pressing needs for saving...; Degree of discipline in consumer savings behaviour; Slightly over one third of consumers can be characterised as disciplined savers…; … although this percentage rises sharply for those with a household income of £50,000 or more...
3.0 RETIREMENT SAVINGS: Introduction; Consumer confidence with respect to provision for retirement savings; Well over a half of consumers lack confidence that they will save enough for their retirement…; … and uncertainty remains high even among respondents aged between 55 and 64…; … although the outlook appears to be rosier for those with a household income above £40,000; Consumer perceptions of savings sufficient to provide for retirement; 7.0% of consumers believe that they will need to save £1 million in advance of their retirement…..; … although the majority of consumers probably under-estimate the amount that they will need; The expectations of retired respondents are more modest than those of individuals still working; Attitudes of consumers towards idea of compulsory saving for retirement; A clear majority of consumers are open to the concept of compulsory retirement saving…; Awareness of consumers of plans for a National Pension Savings Scheme; … although awareness levels of the government’s plans for the NPSS remain low; Importance of various income sources as a means of funding retirement; In general, consumer expectations of the state pension appear to be out of line with reality; Property owned ranks almost equally with financial products designed specifically for retirement ...; Consumers who have retired already appear to be even more reliant on the state pension; Younger consumers appear to be considering alternative means of retirement funding; Expectations of consumers with respect to their likely age of retirement; On average, the retirement age planned by consumers is not in line with government proposals; Willingness of consumers to continue part-time work following retirement; ‘Work until you drop’ - a possible scenario for old age in the UK?; Consumer purchasing patterns for at-retirement products; Traditional pension annuities seem destined to remain the most popular at-retirement choice; Over two thirds of retired respondents are funding their retirement through a traditional annuity; Consumer holdings of products designed to minimize inheritance tax; A significant minority of respondents hold a product designed to minimize inheritance tax
4.0 SEGMENT ANALYSIS: Introduction; Short and medium-term savings products; Interest-bearing deposits or savings accounts for which no notice is required; Interest-bearing deposits or savings accounts for which notice is required; National Savings & Investments bonds or certificates (including premium bonds); Cash ISAs; Equity ISAs; OEICs or unit trusts; Investment trusts or venture capital trusts; Direct stock market (equity) investment; Direct investment in corporate or government bonds; Bank and building society investment bonds; Guaranteed equity and property bonds (excluding NS&I); Life company investment bonds; Life company endowment policies; Child Trust Funds; Tax-free friendly society savings plans; Pension and retirement savings products; Individual personal pensions; Individual stakeholder pensions; Individual SIPPs (self-invested personal pensions); Group personal or executive pensions; Group stakeholder pensions; Group SIPPs (self-invested personal pensions); Company and occupational pension schemes; Savings products designed to minimize inheritance tax
GRAPHICS / TABLES: Sample breakdown by age group, household income band and geographical location; Sample breakdown by number of children, employment status and retirement status; Home ownership and holdings of residential mortgage debt among consumers in the UK, 2007; Consumer holdings of residential mortgage debt in the UK split by value of outstanding debt, 2007; Holdings of non-mortgage debt among consumers in the UK, 2007; Consumer holdings of non-mortgage debt in the UK split by value of outstanding debt, 2007; Consumer holdings of short-term and medium-term savings products in the UK, 2007 (unadjusted); Consumer holdings of short-term and medium-term savings products in the UK, 2007 (adjusted); Consumer holdings of short-term and medium-term savings products in the UK split by value of savings, 2007; Cons. holdings of short and med.-term savings prods. split by value of savings, 2007 (seg. by age group - data); Cons. holds. of short and med.-term savs. prods. split by value of savs., 2007 (seg. by house. inc. group - data); Overall consumer holdings of pension and retirement savings products in the UK, 2007 (unadjusted); Overall consumer holdings of pension and retirement savings products in the UK, 2007 (adjusted); Consumer holdings of pension and retirement savings products in the UK split by value of savings, 2007; Cons. holdings of pens. and retirement savings prods. split by value of savings, 2007 (seg. by age group - data); Cons. holds. of pens. and retirement savs. prods. split by value of savs., 2007 (seg. by house. inc. group - data); Number of relationships with companies offering savings products held by consumers in the UK, 2007; Ownership of homes and other residential property (including buy-to-let) of consumers in the UK, 2007; Consumer ownership of property in the UK (including buy-to-let) segmented by value of property, 2007; Importance of sources of information and advice in influencing the savings decisions of cons. in the UK, 2007; Importance of sources of information and advice in influencing the savs. decs. of cons. in the UK, 2007 (data); Degree of self-direction shown by consumers making more complicated savings decisions in the UK, 2007; Deg. of self-direction shown by cons. making savs. decs. in the UK, 2007 (segmentation by age group - data); Deg. of s-d. shown by cons. making savs. decs. in the UK, 2007 (segmentation by house. inc. group - data); Importance of general motives for saving of consumers in the UK, 2007; Importance of general motives for saving of consumers in the UK, 2007 (data); Importance of general motives for saving of consumers in the UK, 2007 - answers for resps. aged under 45; Importance of general motives for saving of cons. in the UK, 2007- answers for resps. aged under 45 (data); Degree of discipline shown in their savings behaviour by consumers in the UK, 2007; Degree of discipline shown in their savings behaviour by cons. in the UK, 2007 (segment. by age group - data); Degree of disc. shown in their savs. behaviour by cons. in the UK, 2007 (segment. by house. inc. group - data); Confidence of having saved sufficient funds to provide for retirement of consumers in the UK, 2007; Conf. of having saved suff. funds to provide for retire. of cons. in the UK, 2007 (segment. by age group - data); Conf. of having saved suff. funds to prov. for retire. of cons. in UK, 2007 (segment. by house. inc. group - data); Value of savs. perceived to be suff. by cons. to adequately fund retire., 2007 - answers for resps. not yet retired; Value of savs. perceived to be suff. by cons. to adequately fund retire., 2007 - answers for retired resps.; Attitudes towards idea of compulsory saving for retirement of consumers in the UK, 2007; Awareness of government plans for a National Pension Savings Scheme of consumers in the UK, 2007; Perceptions of cons. of various inc. sources as means of funding retire., 2007 - answers for resps. not yet retired; Perc. of cons. of various inc. sources as means of funding retire., 2007 - answers for resps. not yet retired (data); Perceptions of cons. of various inc. sources as means of funding retire., 2007 - answers for retired resps.; Perc. of cons. of various inc. sources as means of funding retire., 2007 - answers for retired resps. (data); Perceptions of cons. of various income sources as the most important means of funding retire. in the UK, 2007; Perc. of cons. of various inc. sources as the most important means of funding retire. in the UK, 2007 (data); Expectations of consumers with respect to their likely age of retirement in the UK, 2007; Willingness of consumers to continue part-time work following retirement in the UK, 2007; Likelihood to purchase various at-retirement products of consumers in the UK, 2007; Likelihood to purchase various at-retirement products of consumers in the UK, 2007 (data); Actual purchase of various at-retirement products of retired consumers in the UK, 2007; Consumer holdings of savings products designed to minimize inheritance tax in the UK, 2007; Interest-bearing deposit or savings accounts for which no notice is required: penetration by cust. segment, 2007; Interest-bearing deposit or savings accounts for which notice is required: penetration by cust. segment, 2007; National Savings & Investments bonds or certificates (inc. premium bonds): penetration by cust. seg. 2007; Cash ISAs: penetration by customer segment, 2007; Equity ISAs: penetration by customer segment, 2007; OEICs or unit trusts: penetration by customer segment, 2007; Investment trusts or venture capital trusts: penetration by customer segment, 2007; Direct stock market (equity) investment: penetration by customer segment, 2007; Direct investment in corporate or government bonds: penetration by customer segment, 2007; Bank or building society investment bonds: penetration by customer segment, 2007; Guaranteed equity or property bonds (excluding National Savings & Investments): pen. by cust. seg., 2007; Life company investment bonds: penetration by customer segment, 2007; Life company endowment policies: penetration by customer segment, 2007; Child Trust Funds: penetration by customer segment, 2007; Tax-free friendly society savings plans: penetration by customer segment, 2007; Individual personal pensions: penetration by customer segment, 2007; Individual stakeholder pensions: penetration by customer segment, 2007; Individual SIPPs (self-invested personal pensions): penetration by customer segment, 2007; Group personal or executive pensions: penetration by customer segment, 2007; Group stakeholder pensions: penetration by customer segment, 2007; Group SIPPs (self-invested personal pensions): penetration by customer segment, 2007; Company or occupational pension schemes: penetration by customer segment, 2007; Savings products designed to minimize inheritance tax: penetration by customer segment, 2007

	Research Index \| Publishers \| My Account \| Contact Us \| About MindBranch
	Welcome Guest (Login/Register) \| 0 items