Saving and Investing for Children - UK - April 2016
“Although 61% of parents in the UK are putting money away for their children’s futures, a third of these are not doing so on a regular basis. Moreover, there are a significant minority who are not managing to save anything at all. For many parents, having other more pressing demands on their money – such as paying bills and repaying debt – will take priority over saving for their children. However, there will be some parents who could manage to save – even a very small amount each month – given a prompt or the right incentive.”
– Sarah Hitchcock, Senior Analyst – Financial Services
This report discusses the following key topics:
- Capturing parents early is key to success
- Reach non-product holders and busy parents through ‘save the change’ initiatives
- More needs to be done to jolt parents out of their apathy towards saving and investment returns
The UK market for children’s savings and investment products has undergone some important structural changes over the past decade, including the introduction and then subsequent cessation of the Child Trust Fund (CTF). The latter was replaced by the Junior ISA in 2011. Further changes to the ISA rules in 2015 have created additional opportunities, with transfers between CTFs and Junior ISAs now permitted.
Tracking the market during this period, Mintel’s consumer research shows that these developments have encouraged more parents to put money away for their children’s future. Today, around three in five parents in the UK are saving for their children, and a large proportion of these are doing so on a regular basis. In addition, more than a quarter of parents say that at least one other family member or friend is contributing to their children’s savings. Most often, the benefactor is a grandparent.
However, now that the State no longer contributes to children’s savings (CTF vouchers expired at the end of 2012), there is a question mark over whether the market can continue to attract the inflow of money that it has done over recent years. There is uncertainty too over whether the industry can sustain interest and commitment from parents, grandparents and others saving for children, particularly in a climate of low cash savings rates and increased stockmarket volatility.
Drawing on a range of industry data and independent consumer survey findings, Mintel’s Report considers these issues. It reveals what products parents are currently using to save for their children and what sources of money they draw on to do so. It also assesses their tendency to switch accounts and providers, and identifies the most common factors influencing their choice of product.
What you get
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
* This is a sample representation of the report layout and does not reflect the research included in this report.
Why buy from us?
Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.
Buy now and you'll have instant access to the information you need to make the right decisions.
Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.
A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.