View more on these topics

Balance is urged to boost savings

A report about consumer debt sends out a warning that unless banks and insurance companies put consumers first, there could be catastrophic consequences for financial providers and consumers.

Datamonitor says the current “spend spend spend culture” is dangerous and urges the financial services industry and the Government to join forces and take a balanced approach to saving and spending.

The reports says consumers are storing up future trouble by racking up debt and not saving enough for the long term.

The banking camp focuses on the effect of growing credit card and personal finance debts while the insurance camp concentrates on consumer attitude and failure to save enough in pensions and long-term savings. Yet, the report says, there is little, if any, communication between the two sides.

Aanalyst and author of the study Liz Hartley says is it time for some joined-up thinking and a more holistic approach to financial services.

Interest rate rises could bring disaster for many people who have overloaded on debt and leave even less cash for savings and pensions.

The report suggests that companies should consider innovative ways to combine the cost of buying a home with contributing to a personal pension.

Hartley says: “There is an increasing view that property is a get out of jail free card and that property will be the new pension. However, this is a high-risk attitude, as the retirement income is dependent on property and rental values.A property crash could leave consumers high and dry.”


Adding up the bill

In my last article, I considered the severe challenges facing the UK in funding pensions for today&#39s and future pensioners. In this article, I assess the actions that the Government is pressing for and take a view on whether these measures will stimulate the growth of pension savings. Simple tax legislationThe Treasury published proposals last […]

Critical points on CA criticism

The article on Lifesearch&#39s response to the Consumers&#39 Association report on poor critical illness advice was accurate (Money Marketing, June 10) but the headline was somewhat dramatised. Lifesearch did not “slam” the Consumers&#39 Association report. In fact, we praised more than we criticised but we did ask them to stop slandering all financial advisers when […]

Increase should be passed on to IFAs – Burns Anderson

Burns Anderson chief executive Ian Parsons welcomes the cap increase as &#39a step in the right direction&#39 but says it remains to be seen if this increase is passed on to IFA professionals, therefore making the product more attractive to sell.He says: “If the increase was passed on it would stand to reason that we […]

Mortgage firms hit back as King crashes in

The mortgage industry has hit back at Bank of England governor Mervyn King&#39s warning that house prices could fall, arguing that it could spark a crash when there was little danger of one before. Lenders and brokers say King does not need to “scare the living daylights out of people” by firing a warning to […]

Sticking to valuation discipline when investing in China

Journalist Alexis Xydias discusses the opportunities – and potential pitfalls – of investing in China with Artemis fund manager Peter Saacke. With Peter holding significant positions in China in the Artemis funds he manages, journalist Alexis Xydias quizzes Peter on the risks of investing in Chinese stocks – including over-valuations, margin trading and financial reporting issues. Click here for video


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and thought leadership.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm