Page 11 - Savings Psyche
P. 11

The problems caused by a lack of information join                                                                                         35%
the burden of choice overload as a contributor to the
decision-making paralysis that is having a severely                      25%
detrimental effect on how people save money (Figure 5).                  25%
   Figure 5. Barriers against making choices around financial decisions

            Lack of knowledge/information on the matter

                          Lack of trust in financial institutions

   Choices available to me are too complex/confusing

        Lack of experience in making financial decisions

Decision-making paralysis                                                Figure 6. Approach to saving money

One of the most startling statistics revealed by The savings                                             10%
psyche of the UK is that almost half of all respondents (47%)
say that they frequently agonise when making financial                                                                               40%
decisions. This is in spite of relatively high levels of confidence
about their instincts for offers (64%) and evaluating                                           50%
opportunities (67%). It is a pinch point in the process from
initial research to eventual product use. But, more importantly,                               Saving is a high priority for me
it is where we find the decision-making paralysis.                                             and I prefer to save my money
                                                                                               whenever possible
Instead of making a difficult, time-consuming and potentially                                  Despite saving being a priority
confusing decision, people are making no decision                                              for me, I still like to spend my
whatsoever. They are pushing the savings choice they need                                      money on the things I want
to make further and further back. As a consequence, 52%                                        Saving is less of a priority for me,
are concerned about saving for the long term and 40%                                           and I prefer to spend my money
expect the long term will look after itself. Also, as Figure 6                                 on the things I want now
shows, most people (60%) readily admit that saving is often
a secondary financial concern.

11 The savings psyche of the UK
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