Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Consumers, Saving and Investing - UK - January 2016

“The outlooks for the savings and investments markets are contrasting. Whilst the cash savings market is struggling to rally against difficult market conditions, the investment market is benefiting from growing levels of interest and the barrier-lowering effects of digital innovation."

Deborah Osguthorpe, Head of UK Financial Services Research

This report looks at the following areas:

  • Persistent low rates lead to long-term shift in behaviour
  • Dormant accounts serve as constant reminders of missed opportunities
  • Online platforms could lower investment barriers

By drawing on Mintel’s exclusively commissioned research, this report examines the savings and investment markets for retail consumers. This considers consumer attitudes towards the savings and investment markets, as well as savings and investment products in the context of market conditions to identify the challenges and opportunities presented to providers operating in this market.

With this in mind, the report looks at: ownership of savings and investment products as well as the value of savings and investments. It also highlights the barriers to investing, consumer savings habits and the influence of the external economic environment on these, as well as features of savings accounts that appeal to individuals. Finally it evaluates overall consumer attitudes towards saving and investing and focuses on how confident people feel about their ability to meet their long-term savings goals.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Scope of the report
      • Executive Summary

          • The Market
            • Cash savings market conditions remain difficult
              • Figure 1: Quarterly variations in savings ratio, Q1 2005 – Q2 2015
            • Government seeks to encourage savers to save more
              • Despite the challenges consumers continue to recognise the importance of saving
                • Significant growth opportunities for the investment market
                  • The Consumer
                    • Significant proportion of savings accounts hold little to no savings
                      • Figure 2: Consumer ownership of savings products, October 2015
                    • Encouraging further engagement could benefit both parties
                      • Hostile savings environment promotes shift in consumer behaviour
                        • Figure 3: Consumer engagement with the savings market, October 2015
                      • Investment providers have opportunity to capitalise on growing interest
                        • Figure 4: Consumer attitudes towards investing, October 2015
                      • Motivation to save driven by personal goals rather than external stimuli
                        • Figure 5: Consumer attitudes towards the impact of the economic climate on their savings habits, October 2015
                      • What we think
                      • Issues and Insights

                        • Persistent low rates lead to long-term shift in behaviour
                          • The facts
                            • The implications
                              • Dormant accounts serve as constant reminders of missed opportunities
                                • The facts
                                  • The implications
                                    • Online platforms could lower investment barriers
                                      • The facts
                                        • The implications
                                        • The Market – What You Need to Know

                                          • Cash savings market conditions remain difficult
                                            • The Government seeks to encourage savers to save more
                                              • Despite the challenges consumers continue to recognise the importance of saving
                                                • Significant growth opportunities for the investment market
                                                • The Saving and Investing Environment

                                                  • Interest rates remain low
                                                    • Figure 6: In-branch quoted household interest rates for cash savings products, January 2005-October 2015
                                                  • Savings falls below pre-crisis levels
                                                    • Figure 7: Quarterly variations in savings ratio, Q1 2005 – Q2 2015
                                                  • Consumers plan to save less
                                                    • Figure 8: Consumer spending habits, September 2015
                                                  • Pensioner bonds boost NS&I deposits
                                                    • Figure 9: Retail savings deposits 2005-15*
                                                  • Strong performance driven by popularity of cash ISAs
                                                    • Figure 10: Volume and value of ISA subscriptions, by type of ISA, 2010/11-2014/15
                                                  • Faltering investor confidence slows investment fund sales
                                                    • Figure 11: Retail sales of unit trusts and OEICs – UK-domiciled, 2010-15
                                                • The Regulatory Environment

                                                  • Government to introduce personal savings allowance
                                                    • ISA regulation undergoes significant change
                                                      • Figure 12: Summary of regulatory changes made to ISAs 2014 and 2015
                                                    • Pension freedoms could increase interest in investing
                                                      • FCA finds the UK cash savings market to be lacking in competition
                                                        • FCA outlines Asset Management Investigation
                                                        • The Consumer – What You Need to Know

                                                          • Significant proportion of savings accounts hold little to no savings
                                                            • Encouraging further engagement could benefit both parties
                                                              • Hostile savings environment promotes shift in consumer behaviour
                                                                • Investment providers have opportunity to capitalise on growing interest
                                                                  • Motivation to save driven by personal goals rather than external stimuli
                                                                  • Consumer Ownership of Savings Products

                                                                    • Almost a fifth of consumers without savings
                                                                        • Figure 13: Consumer ownership of savings products, October 2015
                                                                      • Living in the moment culture lessens interest in saving
                                                                        • Cash ISAs at risk of losing competitive advantage
                                                                          • 30% rely on one savings product
                                                                              • Figure 14: Number of savings products held, October 2015
                                                                          • Consumer Ownership of Investment Products

                                                                            • Lloyds Banking Group sale could boost ownership of shares
                                                                                • Figure 15: Consumer ownership of investment products, October 2015
                                                                              • The investment property opportunity for pension savers
                                                                              • Value of Savings and Investments

                                                                                • 40% have less than £500 saved
                                                                                  • Figure 16: Value of savings and investments, October 2015
                                                                                • 40% of those with five or more products have investible assets of more than £100,000
                                                                                  • Figure 17: Value of savings and investments by number of savings products owned, October 2015
                                                                                • Opportunities to re-engage with dormant savers
                                                                                    • Figure 18: Proportion with no savings, by number of savings products owned, October 2015
                                                                                  • Low interest rates encourage use of alternative products for savings
                                                                                    • Figure 19: Value of savings and investments, by ownership of savings products, October 2015
                                                                                • Barriers to Investment

                                                                                  • Majority of consumers own no investment products
                                                                                    • Figure 20: Number of investment products owned, October 2015
                                                                                  • Risk is the biggest barrier to investment uptake
                                                                                      • Figure 21: Barriers to investment product ownership, October 2015
                                                                                    • The online opportunity
                                                                                      • The need to improve transparency
                                                                                      • Consumer Engagement with the Savings Market

                                                                                        • Low interest rates reduce engagement
                                                                                            • Figure 22: Consumer engagement with the savings market, October 2015
                                                                                          • Engaging the younger market
                                                                                            • Attracting the keenest savers
                                                                                                • Figure 23: Consumer engagement with the savings market, by number of savings products owned, October 2015
                                                                                            • Consumer Savings Habits

                                                                                              • Savings behaviour varies according to motivation
                                                                                                • Help to Buy ISAs could lack flexibility needed for success
                                                                                                    • Figure 24: Consumer savings habits, by purpose for saving, October 2015
                                                                                                  • Young women putting off retirement saving
                                                                                                  • The Influence of the Economic Climate on Savings Behaviour

                                                                                                    • Interest rates have limited impact
                                                                                                      • Figure 25: Consumer attitudes towards the impact of the economic climate on their savings habits, October 2015
                                                                                                    • Younger consumers more influenced by external environment
                                                                                                      • Figure 26: Agreement with the statement “I save more when I am worried about the economic climate,” by age, October 2015
                                                                                                    • The impact on engagement
                                                                                                      • Figure 27: Consumer engagement with the savings market, by agreement with the statement “I save more when interest rates are higher,” October 2015
                                                                                                  • Consumers and Long-Term Savings

                                                                                                    • Confidence in meeting long-term savings goals is low
                                                                                                        • Figure 28: Consumer attitudes towards long-term savings, October 2015
                                                                                                      • Investing boosts confidence
                                                                                                          • Figure 29: Agreement with the statement “I am confident that I will achieve my long-term savings goals,” by ownership of savings and investment products, October 2015
                                                                                                      • Features of Savings Accounts

                                                                                                        • Access is key, especially among older savers
                                                                                                          • Figure 30: Consumer attitudes towards features of savings accounts, October 2015
                                                                                                      • Consumer Attitudes towards Investing

                                                                                                        • The biased savings market
                                                                                                            • Figure 31: Consumer attitudes towards investing, October 2015
                                                                                                          • Cash is not enough
                                                                                                              • Figure 32: Ownership of investment products, by agreement with the statement “Having cash savings alone is not enough to ensure financial security,” October 2015
                                                                                                          • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                              • Abbreviations
                                                                                                                • Consumer research methodology

                                                                                                                Companies Covered

                                                                                                                To learn more about the companies covered in this report please contact us.

                                                                                                                Consumers, Saving and Investing - UK - January 2016

                                                                                                                £2,195.00 (Excl.Tax)