At the Moneyfacts conference last week Hague called for an independent regulatory body to encourage and monitor Britain’s saving habits that would be representative of the financial industry as a whole.
He recommends that the body should be similar to the Association of British Travel Agents, which is a large self-regulated body trusted by the public and the travel industry. He says: “People trust politicians more than they do banks.”
Hague’s speech focused on the needs of the younger generation that would have previously relied on inheritance from their parents. He said: “Parents are either spending this inheritance or putting money towards nursing home fees.”
He pointed to estimates that in 20 years time, over half of the UK population will be over 50 years old, arguing that the reliance on state pensions or investment in property will not be sufficient. He urged the financial industry to come together to work on how to encourage saving.
Financial management and information sourcing company CACI is hosting a meeting on January 20 to identify the level of support from the financial services industry and to agree on action.
Hague said: “The industry needs to get together and get the message across. Let us keep it straightforward but let us act now.”