Moneybox: ‘Financial resilience is about building wealth throughout life’

Moneybox: ‘Financial resilience is about building wealth throughout life’
Caroline Murphree, managing director of savings, investing and retirement at Moneybox

Continuing to make pension contributions and putting aside money is more important than ever amid the cost of living crisis, according to Moneybox’s managing director of savings, investing and retirement. 

Speaking to FTAdviser, Caroline Murphree, who joined the firm from Wealthsimple in July, said Moneybox’s mission at the moment is trying to help people build their wealth.

“It's more important than ever but obviously it is something that people are grappling with right now,” she said.

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“We really do try to encourage people to be making weekly deposits and contributions into their account and we have actually seen that be relatively resilient. That's a really positive sign.”

She explained Moneybox is talking to customers who may be facing financial difficulties to provide some input on what they could be doing.

“[If this is] to the extent where they are facing tensions of being able to afford basic things, then you can reduce contributions, but still continue to make them so that you are building those longer term pots.

“That is a good way to try to balance the near term challenges that you're seeing today while also trying to keep an eye on the longer term.”

She added: “We do feel quite strongly that financial resilience is actually about building wealth throughout your life. It's not just about having a rainy day fund, although that is a very important part of it.”

Murphree explained that Moneybox is trying to see how it can, as an industry - alongside the likes of advisers - help people understand the tradeoffs they are making.

“There are going to be real pressures on energy costs, food costs and more but its important to help them understand that even if it is £10 that you're putting into your pension, that £10 will be worth a lot more in 30 years time than it is today.”

The firm is trying to help consumers understand how to prioritise their rainy day funds in the short term to help manage current costs and not lose sight of the longer term as well.

Murphree explained that although people are very excited to be seeing interest rates - at least on the saving side - inflation has gone up much more than savings. 

“In real terms, you're still doing worse. If inflation does peak in January, as I think the Bank of England is now predicting it will, and those savings rates continue to go up, they will become stronger in real terms.”

Moneybox would normally communicate to customers that if they are investing, it needs to be on a three or five-year term or sometimes even longer.