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Confusion over £27bn savings gap

The ABI&#39s estimate of the £27bn savings gap is in question, with two senior FSA figures claiming there are doubts about its accuracy.

Speaking at the LIA Annual Conference, FSA managing director John Tiner and director of consumer relations Christine Farnish both said there are those who question how big the gap really is.

Both confirmed they believe in the existence of the savings gap but questioned how the ABI came to its conclusion.

Two weeks ago, the IPPR thinktank questioned the economic theory supporting the savings gap in an article in Money Marketing, saying if such a gap does exist, an att-empt to plug it could throw the economy into recession.

Farnish said in reference to the gap: “Not everybody would agree with that figure.”

Earlier in the day, Tiner said: “I am not quite sure how the ABI got to that number but it almost does not matter, it is a big number.”

ABI spokeswoman Leonie Edwards says: “No one has publicly challenged the substance of the Oliver Wyman work. It shows there is a large savings gap in the UK and we are working with the industry and Government to close it.”

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