Savers may ‘not need to worry’ – what are the answers to the UKs biggest savings questions | Personal Finance | Finance


Savings and financial concerns have taken a dramatic hit in recent months. Coronavirus has forced consumers to adapt to a difficult financial reality, with the ONS recently revealing that household spending dropped by 2.9 percent in the first quarter of 2020.

When adjusted for inflation, this was the largest fall since 1979.

On top of this, UK GDP in volume terms fell by 2.2 percent, once again being the joint largest fall in UK GDP since 1979.

These factors appear to have had an impact on savers as online searches indicate that consumers are keen on making the appropriate choices as the economy opens up.

Raisin.co.uk recently analysed the most searched for questions (using data from Google and Answer the Public) when it came to savings throughout this period and Kevin Mountford, the co-founder of the firm, provided answers to some of these queries.

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“If companies were severely affected and pension schemes failed, then the Pension Protection Fund would pay out in most cases.

“Because the Pension Protection Fund would pay out in most cases, if you are retired and already receiving benefits, you should continue to receive them. If you have yet to retire, you should receive 90 percent of your expected pension income”.

Fortunately, a certain level of normality may be on the horizon as governments across the world start to ease lock down rules.

This could bode well when factoring in another frequently asked question, one which saw around 30,000 searches per month during the pandemic:

How long will it take my savings to recover?

In a rare bit of good news, Kevin detailed that savings and general financial wellbeing could perk up by the end of this year: “A Reuters poll for June has found that the UK’s economy will begin its recovery process as lockdown measures begin to ease gradually and more businesses reopen. The poll predicts that we will see a 10.5 percent growth in Q3.

“Although we can’t say for sure when savings are likely to recover, we believe that most people’s savings will have been relatively unaffected unless they or their partner have been furloughed or made redundant during this time.

“For those who are retired or were due to retire, the schemes outlined above should cover any losses”.

Some people may be less worried with improving their finances but more concerned with simply keeping what they do have safe.

That concern is reflected in the final question covered by raisin.co.uk, which generated 25,000 searches per month:

Are my savings safe?

Fortunately, for most savers, there is little to worry about here, as Kevin concluded: “COVID-19 has impacted lives across the world, with the pandemic affecting people’s jobs, health and personal finances. Amid the chaos, people may be wondering if their money is safe in the bank, and the answer is ‘yes’.

“The Financial Services Compensation Scheme (FSCS) covers all UK-regulated current or savings accounts and cash ISAs in banks, building societies and credit unions.

“The FSCS is an independent FCA regulated fund set up by the UK-government. The scheme promises that in the event of a bank collapsing, no matter your age or where you are currently living, you will get some of your money back proving that the bank is registered and regulated in the UK.

“The amount that you can claim through this compensation scheme is limited. The FSCS currently states that if your bank fails, you can claim up to £85,000 per person, per financial institution.”





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