A pan-industry group of financial services firms have joined forces to push for a series of reforms to how the UK approaches long-term saving.
The Savings and Investments Policy (TSIP) project today issued a report, ‘Saving Our Financial Future’, containing measures designed to “help rebuild consumer confidence and trust in short-, medium- and long-term savings”.
The project, launched by the industry trade body the Tax Incentivised Savings Association (Tisa), has pledged to lobby politicians, regulators and the wider financial industry for a series of reforms.
These include a “digital passport” for consumers that will give them a “secure digital identity” within which the process of saving can be simplified, rather than the current reality of many people having different savings pots scattered around haphazardly.
The report also tackled 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”.
The TSIP is headed by BlackRock’s head of UK retail, Tony Stenning, and is directed by an executive committee formed of 22 financial services companies, including the major banks and many of the largest UK asset managers.
Mr Stenning said: “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.
“Ultimately, we want to create a framework for consumers where it is as easy to save as it is to get into debt.”
Commenting on the TSIP report, Ernst & Young’s UK head of wealth and asset management, Gill Lofts, said: “Tisa’s work to make sure long-term saving is firmly on the Government agenda and front of mind for people is going to be key to ensuring Britain saves effectively for its future.
“Encouraging people to save needs to be an integral part of plans for strong economic growth.”
