Personal Finance News

News archive

News

23/02/2009 14:23:13

Economic downturn causes 'readjustment of savings attitudes'

The financial downturn is causing a significant number of people to rethink their money management attitudes.

Research by Saga reveals that 41 per cent of consumers state that they are spending less money due to a fall in their disposable income, while rises in day-to-day bills are seeing 34 per cent of those questioned thinking more about how much money they are saving.

However, a significant number of older Britons are continuing with their old financial habits in spite of the economic crisis, with 38 per cent of over-50s stating their spending behaviour has not changed.

Meanwhile, 52 per cent claim they are sticking to their original investment plans to protect the money they have invested into savings accounts, while 34 per cent have an ongoing savings pot in place - something Saga claims could assist them in weathering the financial storm.

"People over 50 have traditionally been prudent savers and are feeling the effect of base rate cuts," Andrew Goodsell, chief executive of the Saga Group, states.

A recent Fairinvestment.co.uk article indicated that 47 per cent of Britons have dipped into their savings accounts in an effort to supplement their expenditure during the credit crunch.