Finance: Expert discusses impact of inflation on a savings account
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Saving money can be a difficult endeavour, particularly with the cost of living rising, and creating a squeeze on the pockets of many. Indeed, the pandemic served as a moment of reckoning for millions of people who were in need of support in one way or another to keep afloat. COVID-19, then, has served as a trigger for many to take action on their finances and reassess their situation.
Research undertaken by WEALTH at work, provider of financial education in the workplace, explored the extent of the situation.
It found some 26 percent of adults cited the pandemic as their moment of realisation they did not have enough put aside in savings.
More than half of adults asked said the crisis has also made them aware of the need to save more.
The research surveyed 1,015 UK adults in employment between May and June 2021.
However, many people are unaware of the ways in which they can enact better savings habits.
More than two out of five employers do not currently offer any support to help their employers with their finances.
When this does occur, it is usually done remotely through seminars or webinars, with only some offering regulated financial advice.
As a result, then, Britons are being encouraged to actively take an interest in their savings.
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They are also being urged to speak to their employer about any support which could be offered to help them progress towards their goals.
Jonathan Watts-Lay, Director at WEALTH at work, commented on the matter.
He said: “The pandemic forced many people to stop and think about their finances, and the majority realised that they needed to save more.
“Unfortunately, reduced work or redundancy has meant that many have faced a fall in their overall household income.
“Without having sufficient savings to fall back on, many may have struggled to make ends meet.”
“The research has shown us that people do want to learn how to save more money, and some realise that they need to save more into their pension.”
A solution, Mr Watts-Lay explained, is financial education and guidance integrated into the workplace.
This, he said, is an ideal way to help encourage Britons to make the most of various savings vehicles available depending on individual savings needs.
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Ranging from buying a car, securing a holiday, purchasing a home or planning for retirement, everyone has a financial goal they are trying to meet.
Mr Watts-Lay continued: “Financial education can also help with other important financial skills such as how to best manage debt, understanding the importance of having an emergency fund set aside for unplanned life events, as well as having sufficient savings for retirement.
“These uncertain times have highlighted the need for people to become more financially resilient so that they are better able to manage any financial shocks, many will need support on how to go about this.
“Individuals should speak to their employer to see what support they can offer.”
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