Tackling the Savings Gap

A savings gap is a situation where the existing level of savings is insufficient to achieve an economic objective. In the UK economy and other developed economies, a savings gap refers to the gap between current savings for retirement and that necessary to generate a desirable income from retirement. It is also known as a ‘pensions gap’.

A study has shown that UK savers will have to find, on average, an additional £10,000 each year between now and retirement if the nation is to meet a growing ‘savings gap’ that could hit £350 billion by 2050, according to Deloitte

‘Tackling the Savings Gap’ is an ongoing and long-term project to change the way the UK approaches saving and investment.

What can we do about the savings gap?

There is no quick-fix to the problem, but some things are changing…

1. Schools have taught personal finance since September 2014. Unfortunately, we won’t see the benefits for many years. At YorWealth we have supported the Education Champions from the PFS allowing us to do sessions with children and young adults on the basics of finance including such things as opening a bank account and debt.
2. Workplace Pensions – the last statistics available show that 87% of employees participate in a workplace pension. This is positive news, delivering habitual saving.
3. Technology – new propositions and easy to invest “Apps” have made it much easier for people to conveniently save.

As Independent Financial Advisers we recognise that Independent advice isn’t always practical or cost effective for someone wanting to save £100 per month into an ISA. It is however important to support people in getting them on the ladder of investing.

To this end we have partnered with Wealthify to offer a service that aims to meet all your investment needs.

Who are Wealthify?

Wealthify is a popular UK Robo-advisor investment platform who invest in a range of ETF’s in a semi-managed way. They’ve used the power of analytics and algorithms to create five different investment options based on consumer’s attitude to risk.

Aviva backs Wealthify. Aviva are one of the largest and most recognised financial services brands. They invest in the brightest companies around the world to deliver innovative insurance and investment products and services

Why Wealthify?

There are many reasons to choose Wealthify to help tackle the savings gap. These include:

• A fully managed investment service – experts build and manage your portfolio for you
• Completely online service – see exactly what you’re invested in and how it’s performing through your online dashboard
• Affordable investing – fees are kept low, there’s no charge for leaving, and you can start investing from just £1
• Investments that work for you – with five levels of investment risk available and the option to invest ethically, there’s an investment Plan for anyone. Wealthify provides an easy investment experience that makes it simple to see exactly what your investments are doing.

This is not a not an advised proposition, and is for UK individuals only. This may not be a solution for all. Please contact us for an initial discussion on what we can offer and our fees and charges. You can reach us on 01904 623888 or contactus@yorwealth.co.uk.

Wealthify and Aviva

Aviva is one of the UK’s largest financial services institutions which has looked after British consumers for over 300 years. Wealthify operates independently of Aviva while benefitting from their support. This means you get innovation in smart simple investing together with the security of knowing that they are here to stay and operate to the highest standards.

Being part of the Aviva group of companies allows Wealthify to develop their business, but at an accelerated pace and with greater confidence.

YorWealth Ltd is a representative of Hexagon Wealth Limited. The Financial Conduct Authority (FCA No.483403) authorises and regulates Hexagon Wealth. The firm is registered in England and Wales No. 12938859 and its registered office is Studio 7, Forest Farm Business Park, Fulford, York, YO19 4RH.

The value of the products and solutions mentioned in this article may go down as well as up. No investment is a certainty. Please note that any figures, interest, tax rates or product features in this presentation were only for illustrative purpose.