Research: Savings accounts being neglected

Many people are not saving enough money, it has been found.

A large proportion of Britons do not feel financially secure due to the level of debt they have accrued on credit cards or personal loans, new research has suggested.

According to a study conducted by Scottish Widows, which released its latest Priorities of Life Index last week (May 12th), some 17 million people in the UK admit the fact that they neglect their monetary wellbeing, with many indicating putting money in savings accounts is not high enough on their agenda.

It was revealed that 21 per cent of those surveyed feel that their debts are too high, a trend that may have been caused by the trend of borrowing excessively throughout the recession.

Iain McGowan, savings expert for Scottish Widows, commented: "Our financial security and savings are suffering as we struggle to prioritise what really matters when it comes to financial stability."

Despite these findings, Phil Flaxton of Work Wise UK noted recently that fewer people are now taking out credit cards as a way to make ends meet.

According to the Savings Blog, getting professional advice before retiring is essential, an expert has said.

Getting advice from a financial expert is crucial for anyone considering which savings account is best for them to use to plan for their retirement, a specialist in the field believes.

As they approach the age at which they will finish work permanently, Britons may think about taking out deals such as ISAs or fixed rate bonds in order to supplement their pension plans.

However, Sarah Pennells, editor of online resource Savvy Woman, feels it is essential for people to gain the expertise of a professional in the industry before putting pen to paper and committing to a product.

Ms Pennells noted that such experts will take into account any savings an individual has when advising them on what they can afford to put aside.

This comes after MGM Advantage, a mutual society, earlier this week (May 11th) called for greater levels of financial education as well as more innovative development of deals to cut the UK's "retirement income gap".