Tisa to make saving ‘as easy as getting into debt’

The Tax Incentivised Savings Association has come up with seven ways to turn the tide on the nation’s savings habit, which will be unveiled at the start of 2015.

Speaking at the Tisa conference, Tony Stenning, chairman of Tisa’s savings and investment policy project, revealed he will announce plans to “make saving as easy as pressing the big red button to get into debt” next year.

The proposals come after a Tisa report published earlier this year explained the state of the average person’s finances and called for measures to get the nation saving again rather than falling into debt.

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Mr Stenning, who is also head of UK retail at BlackRock, said that following the Tisa review he received 90 different ideas from the industry to turn the tide on savings.

He said these ideas have now been drilled down to seven themes and aims following “daily engagement” with MPs, the Treasury and the FCA.

Pension and savings providers at the Tisa conference in London on 12 November were told the proposals would incorporate guidance, education and tax incentives for the nation to spend less and save more.

Mr Stenning added: “You have two years working for every one year in retirement, and that is a massive problem. 2035 is the tipping point when that generation will retire worse off than their parents.

“Can we nudge them just to change their trajectory to make a huge difference to where their golf ball lands? We have 20 years. It is not too late. We need to help them on that journey.”

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Laurence Sanderson, financial consultant at Essex-based Sterling & Law, said: “The failure of stakeholder pensions led to auto-enrolment because people are living longer and not saving enough. The government has tried to bridge the gap.

“Anything that can be done to get people to save for their future can only be positive. It does contrast, though, with what the government has done with the pension reform, with people potentially pulling out their savings in April.”