Consumers' savings strategy 'not sustainable'

Those seeking advice for insurance, bank and credit matters might agree with an expert's view that consumers who raid long term savings pots could encounter problems further down the line.

George Ladds, head of investment and pension research at Fair Investment Company, gave his verdict on recent research from Schroder's and Scottish Widows which indicated that many people are tapping into the funds they had previously set aside for a rainy day.

"When a financial situation has hit the point where savings are becoming part of everyday spending, something has to change," he said.

Mr Ladds acknowledged that such accounts should be accessed in emergency cases because this is their precise purpose.

The expert also said the UK is increasingly becoming a "buy now pay later society" where a generation of people consider unfettered spending to be the norm.

Meanwhile, statistics from the British Retail Consortium recently pointed towards rising living costs in some areas.

It found that shop prices went up by 0.2 per cent between July and August 2010.

Posted by Emily Jones
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10/09/2010 16:16

News category: Consumer

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