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Turmoil puts savers off making financial decisions

Turmoil puts savers off making financial decisions

Savers postponed making financial decisions last year in light of the political turmoil which shocked markets, according to research from Standard Life.

Of the 2,000 adults questioned, more than half had altered decisions on their finances because of the events of 2016, which include the Brexit vote back in June and Donald Trump’s victory in November.

Of these savers, 16 per cent had decided to postpone making any decisions on their cash, while 11 per cent said they were now worried about their finances.

Yet, last year also drove 12 per cent of people to build a bigger savings buffer, with the top financial goal for people in 2017 being to save more than they did in 2016.

Jamie Jenkins, personal finance expert at Standard Life, said it “seems inevitable” that the events of 2016 would have an effect on people’s approach to financial planning.

“Aiming to save more and build a solid buffer is always a good thing, and the start of the year is a good time to make a plan to see how much you can regularly tuck away.”

But Mr Jenkins said it’s not just how much you save, but where you save that is important, adding savers should look for the best rates on savings accounts and Isas.

The research found that more than 55 per cent of those questioned said they don’t invest or plan to invest in stocks and shares.

But Mr Jenkins advised savers to look beyond traditional savings as well, such as investment.

katherine.denham@ft.com