Saving is sensible – especially when economic data suggests that household spending has soared, Calum Bennie has said.
The savings spokesman for provider Scottish Friendly said although people might feel richer, they should not splurge on spending, but consider saving what they can in the good times.
He said: “With more disposable income the temptation might be to splurge on spending, but before people go out and buy a new TV or holiday, they should consider the long-term picture.
“Saving is sensible – more than ever these days – so those people that do end up finding a little more money in their pocket should act wisely, and use this opportunity to prepare for the long-term.”
In September, the Office for National Statistics revealed that household spending rose by £2.3bn in the past quarter, despite gross domestic product growth for the second quarter was just 0.7 per cent.
Adviser view
Matt Phillips, managing director of London-headquartered wealth manager Thomas Miller Investment, said complexity could be a deterrent to long-term saving, so the government should do more to encourage people to save rather than spend.
He said: “I believe the most effective method of encouraging savings would be for the government to use the tax system to encourage financial education.”