More people are focusing on the importance of saving due to pandemic
The COVID-19 pandemic has sparked a substantial increase in the demand for savings solutions, with a 28% rise in enquiries regarding savings plans registered by deVere in March.
Since the coronavirus outbreak started to have an all-consuming global effect at the end of February, beginning of March, we noticed a steep rise in the number of clients seeking advice on savings solutions.
Subsequently, when the World Health Organisation declared a pandemic in the second week of March, the number of enquiries into savings plans increased again.
As a result of the global emergency, more and more people are feeling the financial strain. As such, this has led to an ever-increasing number of people focusing on the things that really matter.
For the majority, this means making sure that themselves and their loved ones are financially secure to be able to enjoy their desired opportunities and lifestyles.
deVere registered the same pattern at the start of the global financial crash in 2008. This too had a focusing-of-minds effect in terms of the importance of saving.
The financial effect of the pandemic has reinforced the fact that although the ‘living for today’ mindset is a good thing, tomorrow will eventually arrive, and then what? Will you still be in a position to fulfil your obligations? Will you still be able to do what you love with your friends and family? Will you be able to maintain your current lifestyle?
The coronavirus crisis will highlight that we’re increasingly living in a time of personal financial responsibility.
We are seeing more and more that people of working age do increasingly understand the importance of saving for retirement.
They are aware that government will likely not be able to support them as they have done in previous generations because of ageing populations and dwindling workforces; that living, medical and care costs will rise substantially; that company pensions are not as generous, should they even exist; and the fact that we’re all living longer which means retirement funds will need to last longer.
The COVID-19 pandemic has brought the importance of saving back to the forefront. It is never too late to start saving for your retirement, and the sooner you start the more straightforward it will be to hit your long-term goals.
Go on, start saving today!