National savings culture 'must be restored'

The Association of Independent Financial Advisers AIFA and AEGON UK have urged the new government to take steps to rebuild Britain's savings culture.

In a joint White Paper discussion document, the organisations called on ministers to use current technology, infrastructure and legislation to encourage consumers to put more money away.

They believe a new in-store Save Back facility - to work in the same way as Cash Back - could help millions of consumers build a pot for a rainy day.

In addition, AIFA and AEGON UK are calling for more savings education, the foundation of new savings networks, and greater availability of financial advice.

Chris Cummings, director general at AIFA, said: "Individually, and as a nation, we need to rediscover thrift and true prudence.

"While politicians of all parties agree that saving is a good thing, no one has set out exactly how they would encourage it."

Mr Cummings said people must be equipped with the knowledge and confidence to save for their financial future, as otherwise society as a whole will "pay a heavy price".

Earlier this month, the Bank of England froze interest rates at 0.5 per cent, a decision which did little to encourage savers.

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2010-05-28 13:47:47 © Moneyextra.com