Nov 20 2007
The saving rates of many UK consumers are set to increase next year as a more cautious approach is taken toward spending, according to one expert.
Jason Hollands, head of group communications at investment firm F&C, is convinced that when the economic situation becomes more uncertain, as is expected to be the case next year, consumers tend to contribute more to their savings in an effort to secure their own or their children's financial future.
In fact, Mr Hollands suggests that saving rates as a proportion of household incomes are at historically low levels across the UK and maintains that this situation looks likely to change next year.
"You tend to find that in a period when the economy is less certain, that is when the savings ratio in the UK gets rebuilt," he commented.
"When people tighten their belts, and the economy goes through a period where people are perhaps a little bit less certain about their job, it does mean that they are becoming more conservative."
The Tax Incentivised Savings Association reported earlier this year that record amounts are being contributed to child trust funds by parents from across the UK.
