Conservatives outline plan for savings accounts
28/11/2008
Most savings accounts do not meet the needs of the customer, according to Philip Hammond, the Conservative shadow chief secretary to the Treasury.
Mr. Hammond spoke at the Tisa annual conference last week to outline his party's plans for a lifetime savings account, similar to the US 401k plan which allows pension investors to withdraw money.
Hammond said: "We need to look at the requirements people have for savings. Most people in their 20s are paying off student debt, in their 30s people are saving for a deposit for a house and later in life it is about funding for your children or retirement planning, long-term care and maybe leaving an inheritance.
"You have to make long-term savings sexy and engaging. It is possible. For example, when people thought they could put residential property into self-invested personal pensions people got very interested in pensions. But it requires regulatory and policy changes from government."
Also speaking at the Tisa conference was Monique Melis, who specialises in international regulatory issues at Kinetic Partners. She quoted research from the International Monetary Fund which predicted net outflows from actively managed funds would decline by 20%. Passive funds are predicted to decline by 25%, and 20% of managers will disappear in the US and UK.
Mr. Hammond spoke at the Tisa annual conference last week to outline his party's plans for a lifetime savings account, similar to the US 401k plan which allows pension investors to withdraw money.
Hammond said: "We need to look at the requirements people have for savings. Most people in their 20s are paying off student debt, in their 30s people are saving for a deposit for a house and later in life it is about funding for your children or retirement planning, long-term care and maybe leaving an inheritance.
"You have to make long-term savings sexy and engaging. It is possible. For example, when people thought they could put residential property into self-invested personal pensions people got very interested in pensions. But it requires regulatory and policy changes from government."
Also speaking at the Tisa conference was Monique Melis, who specialises in international regulatory issues at Kinetic Partners. She quoted research from the International Monetary Fund which predicted net outflows from actively managed funds would decline by 20%. Passive funds are predicted to decline by 25%, and 20% of managers will disappear in the US and UK.
