Savers put holidays above other financial commitments

The majority of people have a short-term attitude to saving, prioritising holidays above their own and their family’s financial future, according to a survey by Riley, the individually insured investment from Royal London.

The research, conducted by YouGov on behalf of Riley, asked over 2,000 households a range of questions about their finances. When asked to select all the things they saved their money for, 55% of respondents said holidays while a further 30% said luxury items, compared with 34% saying retirement and just 28% stating their family’s future.

The survey also found that 61% of people put most of their money in bank or building society accounts and 9% in property, with just 6% saying that they invested most of their money in a fully diversified portfolio of stocks and shares, property and cash.
Roger Edwards, Head of Marketing Development, commented: "The survey suggests that most people have quite a short term attitude to saving, preferring to treat themselves with holidays and luxury items rather than put money aside for their own or their family’s financial future. This is supported by the fact that the vast majority prefer to invest in banks and building societies rather than in longer term investments such as the stock market.

“However, with Riley, which is available through IFAs, investors have the unique benefits of control over the level and timing of protection and the ability to change that protection at any time. So they can protect enough of their savings to pay for their dream holiday and at the same time invest for the future, with potentially higher returns through stockmarket exposure.”

Riley, which is a life insurance bond with a minimum investment of £10,000, offers investors the opportunity for stockmarket gains with a flexible level of protection. The chosen protected amount is insured by putting part of the original investment into a fund which holds protection contracts provided by a leading investment bank. The remainder of the investment goes into a choice of two funds: the FTSE 350 Tracker Fund, managed by RLAM (Royal London Asset Management), or the FTSE 350 Managed Fund, managed by Andy Simpson at Schroders.

Investment returns are not guaranteed and investors may not get back the full amount of their investment. IFAs can get Information about Riley from their Scottish Life consultant or by going to thelifeofriley.co.uk.