Savings warning: Britons urged to act fast as 'savings rates are low' – 'plan ahead'

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Savings warning: Britons urged to act fast as 'savings rates are low' - 'plan ahead'
Savers have undoubtedly been affected by the COVID-19 pandemic over the last 12 months. With job volatility, reduced salaries and low interest rates, it has been a challenging time financially for many people. Research from Standard Life Aberdeen has uncovered the extent of this problem, and the worries people currently face.
It has been difficult for savers to grow their cash, and with inflation also not set to rise for a while, it is challenging to remain upbeat. 

Amid the savings chaos, though, Britons have been encouraged to take action on their savings to make their money work for them. 

Al Ward, Head of Customer Savings at Choices by Standard Life Aberdeen, commented on the matter.

He said: “It’s understandable many will be experiencing worries about money in light of the past year, particularly when you consider how much uncertainty the pandemic has brought.

“Planning ahead and saving for the future may seem much more complicated, but it’s so important that uncertainty doesn’t get in the way of staying on top of finances.

“Although savings rates may be low, and markets are at risk of volatility, the fact remains that if you can invest money for a longer period of time, it is likely to pay dividends in the future.”

Putting money away for a longer period of time may involve looking into fixed-rate accounts.

As Mr Ward highlights, while these force Britons to part with their cash for longer periods of time, they can have a better benefit.

However, individuals should always look at their affordability before taking this kind of action.

One could not afford to lock away all disposable income for a lengthy period of time, and it is always important to have some liquid cash.

Most financial experts recommend people keep three to six months worth of easy access savings for emergencies.

This means if someone, for instance, loses their job or their circumstances change, they have enough to see them through the difficult period. 

But despite the lack of financial security for many Britons overall, there is one age category which appears to be feeling more sanguine. 

Millennials, individuals aged 25 to 34, have expressed more interest in long-term saving and investments, while those classed as ‘Gen Z’, aged 18 to 24 also feel more confident about investing. 

Mr Ward concluded: “It’s encouraging to see forward-thinking and an understanding of the need for longer-term investments.

“If you are uncertain about your finances, you might consider speaking to a professional adviser to ensure greater confidence in the long-term.

“They will be able to help you understand what is right for you now and help you plan to reach your financial goals for the future.”

This post originally appeared on Daily Express :: Finance Feed


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