The Savings & Investments Policy project – Open Letter 28 04 14
Sir,
For over 60 years, each generation of Britons has enjoyed increasing wealth and rising income. Yet we have failed to use this greater affluence to save – in fact quite the contrary, with each successive generation saving less and borrowing and spending more. Those of us retiring now and in the next few years, the “baby boomer” generation, will be the last to enjoy financial security during our lifetimes unless immediate action is taken.
Only one third of British families save regularly and a further third have no money left at the end of the month to save at all. The situation is most acute for those aged 35 or younger, as they are hit by rising housing costs, higher debts and less generous pensions than their parents. They may live longer and be healthier, but is their old age to be dogged by financial hardship?
Today sees the publication of ‘Our Financial Future’, a review commissioned by 22 leading companies from across the financial services sector, highlighting the savings crisis facing the UK. We believe we have a once-in-a-generation opportunity to change people’s attitudes to saving and develop long-term policies to avert this potential social and economic crisis. We want to work with political parties, regulators and consumer groups to develop an effective savings and investment policy in this country. The Chancellor in the recent Budget gave people greater control over their savings at retirement and the Government has established auto-enrolment, a laudable initiative which came about with cross-party support. It has introduced millions of people to long-term saving but more has to be done. We recognise that the financial services industry has to do better – we have to be more transparent in the way we communicate, we have to eradicate unnecessary complexity and we need to listen to our customers so we can help them enjoy financial security.
We are delighted to see the signs of economic recovery but we urgently need to address the savings imbalance if we are to deliver sustainable long-term growth, stability and prosperity for our country and its people.
Yours faithfully,
Aviva, David Barral, UK & Ireland Life & Pensions CEO; AXA Wealth, David Brown, Strategy Director; Bank of New York Mellon, Michael Cole-Fontayn is Chairman of EMEA; Barclays; BlackRock, Tony Stenning, Managing Director UK Retail; Charles Stanley, Robert Hudson, Managing Director, Charles Stanley Direct; Fidelity, Ed Dymott, Head of Business Development and Strategy; Henderson Global Investors, Andrew Formica, CEO; Intrinsic, Richard Freeman, CEO; JP Morgan Asset Management, Jasper Berens, Managing Director, Head of UK Retail; Legal & General, John Pollock, CEO; Lloyds Banking Group, Andy Bickers, Savings Director; Nationwide, Robert Angus, Head of Investments and Protection; NatWest, Hugh Chater, Director of Investing and Protection; Northern Trust, Wilson Leech, EMEA CEO; Old Mutual Wealth, Paul Feeney, CEO; Pinsent Masons, John Salmon, Head of Financial Services; Simply Biz, Ken Davy, Chairman; Threadneedle Investments, Campbell Fleming, Chief Executive Officer; TISA, Tony Solway, Chairman; Zurich Life UK, Gary Shaugnessy, Chief Executive