Carlton Hood, Customer Director at Old Mutual Wealth and TSIP Executive Committee member, comments on PWC’s report into mounting UK household debt
Carlton Hood, Customer Director, Old Mutual Wealth and member of the The Savings and Investments Policy project’s (‘TSIP’) Executive Committee, in response to PWC’s report into mounting UK household debt which will reach an average of £10,000 in 2016:
“The PWC report presents a worrying picture of mounting consumer debt which has combined with insufficient saving rates to create the perfect storm for a UK savings crisis.
The Savings and Investments Policy project (‘TSIP’), highlighted that one-third of the UK has less than £250 in savings and 50% have less than £1500, while only 45% of the workforce is saving towards retirement. Society’s culture of consumption and debt will lead to a generational ‘tipping point’ in 2035, when children will be financially worse off than their parents.
An average household debt of £10,000 is further evidence of the widening imbalance between saving and spending. TSIP reported that 25% of the population would be unable to cope with a rent or mortgage increase of £250. It is a gap which grows every month because 20% of the workforce spends more than they earn.
Saving is of benefit to everyone by ensuring growth, stability and prosperity for the country. A failure to narrow the savings gap could adversely affect the UK’s GDP, so it is of critical economic as well as social importance to tackle the UK’s culture of consumption.”
Please visit The Savings and Investments Policy project website, www.tisa.uk.com/savings-investments.html for further details about the project.
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Background
The Savings and Investments Policy project (TSIP) is working with a wide range of financial service companies, trade bodies and consumer groups to develop pan-industry proposals. It is directed by an Executive Committee: Aviva, AXA Wealth, BNY Mellon, BlackRock, Ernst & Young, Henderson Global Investors, Intrinsic, J.P. Morgan Asset Management, Legal & General, Lloyds Banking Group, Nationwide, NatWest, Northern Trust, Old Mutual Wealth, Openwork, Pinsent Masons, RBS, Threadneedle Investments and TISA. Members of TSIP’s Advisory Board are: Ascentric, Association of British Insurers, Association of Professional Financial Advisers, Bravura Solutions, Building Societies Association, FairLife, Friends Life, Hargreaves Lansdown, Investec Wealth & Investment, Microsoft, Parker Fitzgerald, Schroders, Sesame Bankhall Group, SimplyBiz, Standard Life, TD Direct Investing, The Investment Association, True Potential, The Share Centre, Yorkshire Building Society and Zurich UK Life. It is managed by TISA*.
*TISA is a not-for-profit membership association operating within the financial services industry. It represents the interests of over 145 member firms involved in the supply and distribution of savings and investment products and services.
TISA has a highly successful track record in working cooperatively with government, regulators, HMT, DWP and HMRC to improve the performance of the industry and the outcomes for consumers. Policy and regulation continues to be the major focus for our members with regard to corporate responsibility.Website: www.tisa.uk.com