Financial services companies in the UK have joined forces to push for a series of reforms to how the UK approaches saving.
The Savings and Investments Policy (TSIP) project, a coalition of more than 50 companies and trade bodies, has issued a report containing measures designed to “help rebuild consumer confidence and trust in short, medium and long-term savings”.
The report, ‘Saving Our Financial Future’, includes work on a “digital passport” that aims to speed up the process of opening savings and investment accounts and to enable consumers to manage their finances all in one place online.
“It’s much easier to get into debt than it is to save in this country. We need to reverse that,” said Tony Stenning, head of UK retail at BlackRock, the asset manager, and TSIP chairman.
A prototype of the passport will be built this year with the hope of launching a pilot in 2016, and rolling out the first stage of the project in 2017. It will be financed through membership fees charged to companies.
Consumer campaigners have praised the plan. “There is an urgent need to encourage the development of new electronic tools to enable consumers to see all of their finances in one place,” said Dominic Lindley, an independent consumer campaigner.
The report also tackles the thorny issue of “financial guidance”, which has gained prominence amid the pensions overhauls set to take place in April.
The group wants to increase consumer access to guidance while alleviating fears advisers have over liability and redress issues.
On pensions, the TSIP project pledged to assist any government initiative “to reform pension tax relief” or to “nudge” people into saving more into pensions.
The report warned that, unless widespread action is taken now, there will be a “tipping point” in 2035 “when those entering retirement will be increasingly less well-off than earlier generations”.
Mr Stenning added: “A crisis point is fast approaching where younger generations will soon face a significantly lower standard of living during their working lives and in retirement than their parents.
“These recommendations represent an opportunity for Government and the entire financial services industry to work more closely together to secure the financial wellbeing of future generations.”