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NI increase will kill savings warns Sofa

The 1 per cent hike to National Insurance from April will sound the death knell to any possibility of convincing people to save, Sofa has warned.

The professional body says that when combined with other factors such as plunging markets and lack of consumer confidence in financial services providers, the 1 per cent increase in taxes may dissuade consumers from saving at all.

Managing director Brian Lawless says: “We accept that this may be a temporary position, but are nonetheless very concerned that many people who are currently extremely savings shy will become even more so. Sofa is concerned that the ramification of this will not be obvious for many years, possibly until the person retires, so a potential time bomb is ticking.”

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