Tuesday, August 28, 2007

Savings Fall

Research carried out by the Post Office shows that British people are now saving less than they ever did in the last 50 years.

A staggering 25% of people fail to save any money whatsoever; those that do bother to save are doing so for indulgences, such as holidays.

Given the dismal reputation of the financial services industry (arising from eg the endowment scandal, the pensions scandal, excessive interest charges for credit, excessive bank charges, mis-selling of insurance policies etc) it is hardly surprising that people cannot be bothered to save. They simply do not believe that the money will be there for them when they need it.

The financial services industry will need to get its house in order and rebuild its shattered reputation, if it wants people to ever trust it again.

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