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&#39Govt savings push has had reverse effect&#39

The Government&#39s attempts to convince the nation to save have had the reverse effect and created a negative attitude to saving, according to research from IFA Promotion.

Only a third of adults surveyed believe the Government has made them more inclined to save for the future while 43 per cent say they are less inclined to save.

Forty-seven per cent of people on lower incomes said the Government has made them less likely to save and 19 per cent said that Government initiatives have made no difference to their attitude to saving.

The survey has also cast doubt on the benefit of the child trust fund. When asked what they would do with a £5,000 windfall at age 18, 60 per cent said they would have spent the money on travelling, luxury items or living it up.

One in 10 would put the money towards a deposit on a property, one in 20 said they would invest in an Isa or pension and only 12 per cent would use the money to fund further education.

Chief executive David Elms says: “Our survey, conducted just days after Gordon Brown&#39s Budget, shows that UK savings apathy has reached chronic proportions. We believe much more needs to be done now to educate people about the need to save for the future and to give them independent advice on how best they can start doing this.”

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