Why save?
We live in an uncertain world where jobs are easy to lose, incomes fragile and where relying on the state for anything more than a basic financial safety net looks foolhardy. Britons are also living longer, with retirements of 20 to 30 years increasingly common.
The credit crunch has meant that it has become increasingly difficult to get on the property ladder without a substantial deposit.
Children are also placing even greater financial demands on parents, who may want to send them to a private school or help cover university costs.
So saving is more important than people realise. One of the biggest problems is that whilst people are putting away some of their hard earned cash, they are servicing debt at the same time – often both from the same place, and therefore applying a brake to their savings efforts. Research by Unbiased.co.uk shows that for every pound we managed to save we borrowed 51p in 2007!*
*Source: Research by RAKM for IFA Promotion, December 2007.
Next page - How much should you save?
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