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Levels of savings and investments were already low prior to the recession, when a consumerist economic boom period swept the nation, fuelled by cheap consumer credit. As such, levels of debt were high, while savings and investments remained low. There is evidence that this trend is beginning to reverse, with the population gradually beginning to funnel a greater proportion of their incomes into savings and investments — with a particular winner in terms of attracting funds being cash and stocks and shares individual savings accounts (ISAs) — but the prevailing economic conditions are hampering these efforts. This is despite ISAs being preferable for banks as they improve capital reserves, and for customers because of the tax advantages. However, individuals can only save and invest if they have the disposable income to do so — in a time of wage freezes, high unemployment, high inflation and general economic uncertainty, many simply do not. This Market Assessment reveals the UK market for savings and investments between 2008 and 2012, and projects the market for the future until 2017. The market is broken down into seven sectors: savings accounts with banks; savings accounts with mutual organisations; National Savings and Investments (NS&I) products; ISAs; unit trusts and investment trusts; stocks and shares; and life insurance and pension products. Herein, Key Note will evaluate and gauge the size and growth prospects of each of these sectors to determine the size of the market as a whole. Investment in insurance-linked products has suffered because of reputation difficulties, as well as from poor performance of stocks and shares. Pension funds were once major generators of investments, but the low interest rate environment, coupled with the record high price of government bonds — which pension funds invest heavily in — and the low yields they provide, have changed this. Many of the more generous pension schemes, that is defined-benefit (DB) schemes which provide an employee with an absolute pension figure based on their final salary, are in considerable levels of deficit thanks to this underperformance. Indeed, pension fund deficits are often seen as a considerable drain on a company’s resources. However, despite this it is clear that pension saving must be encouraged, given the growing elderly population and the inability of the state to cover the cost of such a demographic shift. The Government’s introduction of automatic enrolment into pension schemes is a step in this direction, which could lead to a renaissance for pension investment. Savings and investments can be incredibly complex products; it is not always easy for individuals wishing to save or invest to understand the range of products available. According to exclusive market research contained within this report from a consumer survey conducted in December 2012, over four-fifths of respondents thought that there was insufficient financial education in schools to teach children how to save and invest sensibly. However, less than a third of respondents said that they personally wanted to learn to save and invest more sensibly. Overall, each sector of the savings and investments market has suffered in different ways due to the economic crisis and the protracted recovery from it. Stocks and shares have suffered due to sluggish equity markets; savings accounts and ISAs have become somewhat unappealing to investors thanks to the low interest rates paid, due to the Bank of England’s (BoE’s) record low base rate; unit and investment trusts have had to strive against reputational difficulties; and NS&I products have been affected by the price and yield on gilts. As such, the market has been through significant turbulence, but concerns over the UK’s economic future and therefore the employment future of the general population is likely to keep the market bolstered, with savers holding extra liquid or easily liquidated assets if they can to act as a buffer should economic recovery turn sour. Table of contents : Foreword Executive Summary Introduction OVERVIEW DEFINITION Strategic Overview MARKET DYNAMICS AND SEGMENTATION Current Status of the Market Total Industry Value and Growth DISTRIBUTION COMPETETIVE STRUCTURE ADVERTISING THE CONSUMER Consumer Confidence ECONOMIC TRENDS CONSUMER TRENDS Overview Banks BACKGROUND Deposit Interest Rates MARKET SIZE MARKET SHARE CONSUMER TRENDS Overview "I Have Little Confidence in Banks' Abilities to Handle My Savings and Investments" MARKETING ACTIVITY Advertising DISTRIBUTION Branch Structure Mutual Organisations BACKGROUND MARKET SIZE All Mutuals Building Societies Credit Unions MARKET SHARE DISTRIBUTION Building Societies Credit Unions MARKETING ACTIVITY Advertising SAVINGS CLUBS National Savings and Investments INTRODUCTION MARKET SIZE National Savings Gilts MARKET SHARE CONSUMER TRENDS Overview "I Invest in National Savings and Investments, Including Premium Bonds" DISTRIBUTION MARKETING ACTIVITY Advertising Individual Savings Accounts BACKGROUND ISAs Child Trust Fund/Junior ISAs Stakeholder Savings MARKET SIZE CONSUMER TRENDS DISTRIBUTION MARKETING ACTIVITY Advertising Unit Trusts and Investment Trusts About Author Bio: I am working with a market research company which provides market research reports , custom research, company profiles, industry analysis, country reports , business reports, online databases and the report on SaSavings & Investments Market etc. Through our industry analysis you can identify opportunities, analyze the requirements of the customers and study the competition sector wise.
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