MP blames lack of advice for UK savings gap

A lack of expert advice and financial literacy is to blame for a savings gap in the UK, according to the shadow work and pensions secretary.

Speaking to the Association of British Insurers, Theresa May claimed there is a savings void of around £27 billion today, as reported by the Financial Times.

For this gap to be closed, saving levels would have to increase by 54 per cent, she said.

She said: "Studies have demonstrated worryingly high levels of financial illiteracy in the UK, and people need good quality, reliable financial advice as they make major decisions throughout their lives."

Calling on more consumers to access the free support available to them, Ms May claimed "more advice means more saving".

One way for consumers to boost their savings is to use accounts which pay the best interest rates.

Comparison tools on moneyextra.com give savers full market access to current interest rate tariffs available in the UK.

Moneyextra.com recommends you take independent financial advice before acting on any article

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2009-10-14 16:22:51 © Moneyextra.com