The Association of Independent Financial Advisers (AIFA) has called on the government to make restoration of a savings culture a key element of its Pre-Budget Report (PBR).
The trade body is also calling for an assessment of existing pensions legislation and an independent review of how we can restore a savings culture in the UK. A simple way to encourage consumers to review their finances would be to remove the tax limit for financial advice for employees. This would encourage firms and employees to access independent advice, and as a result make more, and better, provision for the future. AIFA’s full PBR submission is available here.
Chris Cummings, director general of AIFA, said: “The government should work to develop a culture where savings are the first bill people pay. Until then the competing demands of spending and debt repayment will undermine the good intentions of consumers. Too often spending is referred to as the only way to stimulate economic growth. We must place more emphasis on saving.