Savers lacking in confidence

by Gill Montia

Story link: Savers lacking in confidence

Standard Life has published its latest Savings & Investment Index, which shows a substantial drop in consumer confidence in the savings and investment market.

The insurance company’s research found that independent saving accounts were the most favoured investment vehicle.

Pensions schemes came next with savers enthusiastic about occupational pension schemes, personal pensions and self invested personal pensions.

Putting money in stocks and shares proved to be the least popular means of accruing funds.

The survey also revealed that less than one-third of respondents plan to save over the coming year, the lowest figure ever recorded by the index.

Eleven per cent of respondents expect to save less in the coming 12 months than in the previous year, leaving 45% without hope of saving anything.

Standard Life’s chief executive of UK Financial Services, Trevor Matthews, believes that the recent credit crisis has shaken consumer confidence in investing.

He points out that: “At a time like this I believe it is important to remind people not to lose sight of the big picture and to continue to adopt a long-term perspective about assets such as property and stocks and shares.”

Only last week Scottish Widows published research showing an increase in the number of people relying on their property as a retirement fund, however, if the property market falters pensions may well increase in popularity.