Changing economic, demographic and even social trends will mean that individuals and families will need to increasingly adopt savings habits in order to cope with the changing demands that will be placed on them. Whether it be from the point of view of people living longer and having children later or from the pressures on the Government purse in terms of pensions provision and healthcare, savings will be an increasing necessity for everyone – and a big opportunity for financial services providers to tap into this need.
Only 20 or 30 years ago, life expectancy was much lower than it is today, full employment (or at least a ‘jobs for life’ culture) meant that people were more certain of being able to work until retirement. State pension benefits were more adequate in supporting people in their retirement.
Higher rates of inflation and even higher rates of house price inflation meant that housing costs were more affordable and the ‘nest egg’ that built up in terms of the value of your home (and the ability to borrow against its value) meant that for many the family home was not only a source of borrowing but also a means to boost pension income. Read more