Table of Contents
Overview
-
- What you need to know
- Scope of this Report
Executive Summary
-
- The market
- Retail deposits show steady growth
-
- Figure 1: Total retail savings deposits, 2006-16*
- Base rate cut to record low
-
- Figure 2: UK’s consumer price index and base rate, January 2006 – November 2016
- EU referendum vote caused mass investment exodus
- Lifetime ISAs: the pension alternative?
- The consumer
- Consumers seek familiarity in turbulent times
-
- Figure 3: Consumer ownership of savings products, October 2015 and October 2016
- Almost 1 in 3 people look for better returns
-
- Figure 4: Consumer ownership of investment products, October 2015 and October 2016
- Majority of consumers have a buffer
-
- Figure 5: Value of savings and investments, October 2015 and October 2016
- Size and timing of contributions tends to be spontaneous
-
- Figure 6: Methods of contributing towards savings or investments, October 2016
- Low interest rates polarise consumers
-
- Figure 7: Attitudes towards saving and investing, October 2016
- Online management tools now crucial to savers and investors
-
- Figure 8: Important factors when choosing a savings or investment provider, October 2016
- What we think
Issues and Insights
-
- Brexit uncertainty adds an extra sense of caution
- The facts
- The implications
- Balancing physical and digital demands
- The facts
- The implications
- Investing: a rich man’s game?
- The facts
- The implications
The Market – What You Need to Know
-
- Retail deposits show steady growth
- EU referendum vote caused mass investment exodus
- Base rate cut to record low
- Saving ratio still lags behind pre-recession levels
- Lifetime ISAs: the pension alternative?
- Government announces Help to Save scheme
- FAMR seeks to bridge the advice gap
Saving and Investment Market Size
-
- Retail deposits show steady growth
-
- Figure 9: Total retail savings deposits, 2006-16*
- Premium Bonds limit upped to £50k
-
- Figure 10: Retail savings deposits, 2006-16*
- Stocks and shares ISAs hit record high
-
- Figure 11: Volume and value of ISA subscriptions, by type of ISA, 2010/11-2015/16
- EU referendum vote caused mass investment exodus
-
- Figure 12: Retail sales of unit trusts and OEICs – UK-domiciled, 2012-16
- Buy-to-let market hit by tax increases
-
- Figure 13: Number of loans for buy-to-let house purchases in the UK, January 2013 – September 2016
The Saving and Investing Environment
-
- Base rate cut to record low
-
- Figure 14: UK’s consumer price index and base rate, January 2006 – November 2016
- Saving ratio still lags behind pre-recession levels
-
- Figure 15: Quarterly variations in savings ratio, Q1 2006 – Q2 2016
- Consumers’ cautious mindset
-
- Figure 16: Trends in saving activity, June 2012 – October 2016
- Investing remains a niche activity
-
- Figure 17: Sources of investment advice, by ownership of investment products, April 2015
The Regulatory Environment
-
- Lifetime ISAs: the pension alternative?
-
- Figure 18: Awareness and interest in Lifetime ISAs, September 2016
- Government announces Help to Save scheme
- FSCS limit restored to £85,000
- FAMR seeks to bridge the advice gap
-
- Figure 19: Attitudes towards robo-advice services, February 2016
The Consumer – What You Need to Know
-
- Nearly two fifths of consumers now have a workplace pension
- Almost 1 in 3 people look for better returns
- Almost half of savers do so out of caution
- Low interest rates polarise consumers
- Brexit uncertainty simply adds to existing investment barriers
- Online management tools now crucial to savers and investors
- More than half of adults interested in digital innovations
Consumer Ownership of Savings Products
-
- Consumers seek familiarity in turbulent times
- Auto-enrolment widens the workplace pension net
-
- Figure 20: Consumer ownership of savings products, October 2015 and October 2016
- Millennials: a tale of two halves
-
- Figure 21: Consumer ownership of savings products, by generation, October 2016
- More than half of consumers have multiple savings products
-
- Figure 22: Repertoire of consumer ownership of savings products, October 2015 and October 2016
Consumer Ownership of Investment Products
-
- Almost 1 in 3 people look for better returns
-
- Figure 23: Consumer ownership of investment products, October 2015 and October 2016
- Lowering the complexity barriers for the risk-averse
-
- Figure 24: Consumer ownership of any investment product(s), by gender and generation, October 2016
Value of Savings and Investments
-
- Majority of consumers have a buffer
-
- Figure 25: Value of savings and investments, October 2015 and October 2016
- Nearly a fifth of 45-64s have no cash assets
-
- Figure 26: Value of savings and investments, by age, October 2016
- Saving to get on the property ladder
-
- Figure 27: Value of savings and investments, by housing situation, October 2016
- Tailoring products for low value savers
Methods of Contributing to Savings
-
- Size and timing of contributions tends to be spontaneous
-
- Figure 28: Methods of contributing towards savings or investments, October 2016
- Young and wealthy most likely to plan ahead
-
- Figure 29: Methods of contributing towards savings or investments, by age and gross annual household income, October 2016
-
- Figure 30: Squirrel budgeting app UI
Reasons for Saving
-
- Almost half of savers do so out of caution
-
- Figure 31: Reasons for saving, October 2016
- ‘Buy now pay later’
- Mission-based budgeting tools will appeal to most savers
-
- Figure 32: Repertoire of reasons for saving, October 2016
Reasons for Investing
-
- Two fifths of investors planning for retirement
-
- Figure 33: Reasons for investing, October 2016
- Thrill of risk-taking appeals most to young men
-
- Figure 34: Reasons for investing, by gender and age, October 2016
-
- Figure 35: Moneybox app UI, 2016
Attitudes towards Saving and Investing
-
- Low interest rates polarise consumers
- Peer-to-peer lending appeals to the more affluent
-
- Figure 36: Attitudes towards saving and investing, October 2016
- Brexit uncertainty simply adds to existing investment barriers
- CHAID analysis
- City-based parents the most likely to consider alternative investments
-
- Figure 37: Consumers sentiment towards savings and investing– CHAID – Tree output, October 2016
Important Factors when Choosing Provider
-
- Online management tools now crucial to savers and investors
- Established brands continue to hold sway with savers
-
- Figure 38: Important factors when choosing a savings or investment provider, October 2016
- Young men still like assurance of human advice
-
- Figure 39: Important factors when choosing a savings or investment provider, by gender and age, October 2016
Interest in Digital Innovations
-
- More than half of adults interested in digital innovations
-
- Figure 40: Interest in digital saving and investing innovations, October 2016
- Digital trackers can provide an extra touch point
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
- CHAID analysis methodology
-
- Figure 41: Consumers sentiment towards saving and investing – CHAID – Table output, October 2016
Back to top