Savings expert calls for reversion to traditional habits

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Consumers should be getting the most out of savings rather than speculating on short-term capital gains, it has been claimed.

Independent pensions expert Stewart Ritchie was commenting after an Aegon study found that many households are failing to build cash savings pots for the future.

He said that for too long, people have relied on an expectation that houses will go up in value and stocks and shares will rise, rather than seeking the best interest rates on savings.

"The credit crunch has shown this to be a dangerous assumption," Mr Ritchie said.

He said consumers needed to "get used to the idea that the easy path to wealth through capital gain will have to be replaced by a return to more traditional savings habits".

Last month, the Nationwide Savings Index reported that 21 per cent of consumers intend to put more money aside over the next half-year.

This is compared to the 17 per cent who expect to save less.

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Tags: best interest rates on savings , short term capital gains , dangerous assumption , credit crunch , savings habits , stocks and shares , easy path , aegon , capital gain , half year , expectation , pots , pensions , households , interest rates , consumers , money ,

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2009-11-04 13:29:43 © Moneyextra.com