Savers told not to sacrifice nest eggs - Savings - News - Moneyfacts


Savers told not to sacrifice nest eggs

Savers told not to sacrifice nest eggs

Category: Savings

Updated: 01/07/2009
First Published: 01/07/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Hard pressed consumers have been urged not to sacrifice insurance and savings in order to maintain their current lifestyle.

Meeting the cost of sustaining a comfortable lifestyle was found to be a bigger financial concern than dwindling savings, according to research from LV=.

Indeed, 22% of people surveyed said they had been raiding their savings and investments to cover day-to-day outgoings.

Meanwhile, despite nearly two thirds of respondents revealing that the pressures of the recession had led to them wanting to spend more time with loved ones and consider personal and family health, the majority had taken little or no action to protect or provide for them.

Just 4% of adults said they had taken out their own insurance to replace their income if they were to become ill and unable to work.

Moreover, only a third had savings on deposit to act as a safety net, while a quarter had cut their insurance or started using their savings to help make ends meet.

"Rather than doing away with valuable insurance or eating into savings, it is important for people to take stock of their financial situation," said Mike Rogers, LV= group chief executive. "Everyone can take some financial steps, however small, towards protecting the things they love most in life.

"For example, insuring the breadwinners in the family for loss of income will make only a modest impact on most people's finances, yet can provide vital assistance if the worst should happen."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.

Start saving for Christmas… 2017!

Christmas is just around the corner and our annual festive splurging is starting to step up, but are you prepared? It may be too late to start saving for this year’s festive spend, but it’s never too early to start for next year’s!