01.12.2008
Credit crunch creates a nation of savers
Despite a drastic drop in consumer confidence in the economy, more people are saving, according to the most recent set of results from the Standard Life Savings & Investment Index.
The overall Index score, which measures consumer sentiment towards various saving and investment categories, dropped to -3 this quarter - its lowest level since research began in July 2005.
But 58% of those surveyed said they are actively saving or investing for their future, up 10% on 6 months ago, and the highest since January 2007. 43% say that they save regularly - up 9% on last quarter, and a further 29% save whenever they have spare cash. However, while more of us may be saving, a rising number (37%) said that they are saving less than they were 12 months ago - up from 23% back in January this year.
When asked about their main concerns in the current economic climate, 95% expressed concern about the cost of living, with 77% concerned about a reduction in their disposable income.
In addition, only 8% of people said they had considered stopping or reducing payments into a pension or long term saving scheme.
Iain McLeod, Head of Savings & Investments at Standard Life said, "This latest set of results is encouraging, especially given the economic backdrop. The Savings & Investment Index told a different story last summer just before the credit crunch hit. Consumer confidence in general was high, with the Index still up around its peak, but fewer people were actively saving. Now that times have changed, consumer confidence has plummeted, but there is evidence to suggest that our live for today / pay tomorrow culture may be shifting, and we are adopting more prudent savings habits."
Ends
Media enquiries please contact:
Lesley Davidson, PR Consultant
Standard Life Assurance Limited
Direct: 0131 245 6087
Mobile: 0773 497 4190
Email: lesley_f_davidson@standardlife.com
Yvonne Savage, Senior Media Affairs Manager
Standard Life Assurance Limited
Direct: 0131 245 0476
Mobile: 0771 248 6331
Email: yvonne_savage@standardlife.com
Overall index results are derived from question 1. The figure is an average of all the index scores calculated for the individual investment categories. The index scores are calculated by adding the good/very good figures and subtracting those staing bad/very bad and dividing this by the total number of respondents (excluding those that stated 'don't know').
Textual alternative
July 05 - 11, October 05 - 15, January 06 - 19, April 06 - 18, July 06 - 21, October 06 - 23, January 07 - 21, April 07 - 19, July 07 - 20, October 07 - 11, January 08 - 3, April 08 - 8, July 08 - 2, October 08 - minus 3.
Notes to editors
- The Standard Life Savings and Investment Index is a quarterly survey measuring consumer sentiment for investment classes and savings vehicles.
- The latest wave of the Standard Life Savings and Investment Index also showed:
- The overall Index has dropped to its lowest ever level, -3 (*see notes below)
- Confidence in buy-to-let property is at its lowest level since research began, while confidence in investment in one's own home has seen an increase for the first time since April 2007
- Almost half say they are worse off than 12 months ago
- 40% are not satisfied with their savings for retirement
- The quarterly research has been measuring consumer sentiment towards various savings and investment categories since July 2005. The overall Index score plummeted to -3 this wave - its lowest ever. The highest point was 23 in October 2006. The Index score is derived from the responses people gave when asked if it was a good or a bad time to invest in a range of investment categories.
- The research was carried out by Lightspeed Research using a quantitative on-line methodology. The sample was a representative sample of the UK population of those aged 18-65. The most recent wave of fieldwork took place between 15 and 16 October 2008 with an overall sample size of 1,509.
- Based on all responses, this sample size allows us to comment on significant differences where there is a +/- 3% variance wave on wave. Interpretation and analysis of results were carried out by the Customer Research Department at Standard Life.
- To arrive at the overall Index score, respondents are asked "On a scale of 1 to 5, where 1 = very bad and 5 = very good, please consider the following list of investment categories and tell me whether you feel it is a good or bad time to invest in this way for your financial future":
- Cash/basic savings accounts
- Notice account
- Stocks and shares
- Bonds (Premium, National Savings)
- Property - investment in own home/renovation
- Property - buy to let
- Alternative Investments (Gold, Fine wine, Antiques)
- The Index scores are calculated by adding the good/very good figures and subtracting those stating bad/very bad, and dividing this by the total number of respondents (excluding those who stated "don't know").
- Copies of the full report are available on request.
- Standard Life has approximately 7 million customers worldwide and provides an extensive range of products and services, aimed at meeting the financial requirements of customers throughout their lives.