ABI survey: most people lose confidence in saving

by Richard Kilner

Story link: ABI survey: most people lose confidence in saving

The Association of British Insurers (ABI) has published research which reveals a worrying picture of public opinion towards saving.

The Savings and Protection survey, conducted by YouGov, showed that almost three-quarters (73%) of Britons think that the benefits of saving have fallen during the course of the last year.

Only 7% of respondents felt the opposite, that saving had become more attractive over the last 12 months.

The trend is perhaps unsurprising, given the record low interest rate of 1.5%, whilst helpful to borrowers, has hit savings-based income hard.

In addition, general consumer confidence remains low with 70% believing the economy will continue to worsen into 2009.

Another survey, by Cohn & Wolfe, has revealed that 60% of consumers believe that banks are not looking after their interests and that almost half of respondents considered the banks to be greedy.

The ABI’s director of Research and chief economist, Dr Rebecca Driver, has warned that the present recession highlights the dangers of too much debt and stated that the country needs to develop a better approach to savings.