Over the past 50 years, the UK has experienced fundamental changes to consumer savings habits. In the medium to long-term, these have the potential to be detrimental to individuals’ financial wellbeing, as well as our economy. In addition to low savings rates and poor financial resilience, we face a tipping point in 2035 when individuals are likely to retire in a significantly worse off position than their parents, unless action is taken now.
In response to this impending storm, TISA formed The Savings & Investments Policy Project (TSIP). This pan-industry initiative comprises fifty leading financial services firms, trade bodies and consumer groups, tasked with developing policy proposals for the financial services industry and government. The aim is to enhance UK savings rates and restore financial security in retirement.
After near on 18 months of planning, this week has seen TSIP launch its proposals with a series of industry and media events. Key topics covered in the policy proposals include:
- Increasing education to enhance financial decision making
- Developing generic guidance propositions that meet consumer needs
- Making savings easier for the consumer
- Potential changes to the pension tax regime
- Increasing pension contributions by the general public using ‘nudge’ techniques
- Creating a Savings Minister
To read the full proposals, click here.
Bravura Solutions has been a member of the Advisory Board since inception and looks forward to remaining involved in the project moving forward. Work is ongoing to develop further strategic solutions which will be presented in the latter half of 2015.