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Coronavirus prompts growing number to re-evaluate their savings

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The coronavirus pandemic has triggered a ‘significant rise’ in the demand for savings solutions, according to the deVere Group, a leading independent financial advisory organisation, that reported a 28% jump in enquiries about savings plans in March.

“Since the coronavirus outbreak began to have an all-consuming international impact in late February, early March, we noticed a surge in clients seeking advice on savings solutions,” said deVere Group CEO and founder Nigel Green.

“Then, when the coronavirus was officially declared a ‘pandemic’ by the World Health Organisation in the second week of March, savings planning enquiries further increased sharply.”

Green explained that due to the terrible Covid-19 emergency, many more people are suddenly and unexpectedly feeling the financial pinch, and the pandemic has put their finances under strain.

“But this has had the effect of more and more of us thinking about and valuing more than ever what really matters to us. For most people, this includes ensuring that we and our loved ones are financially secure to have the opportunities and lifestyles that we desire.”

The DeVere CEO said that this same trend appeared when the 2008 financial crash struck, as that crisis, too, focused minds on the importance of saving.

“The financial impact of coronavirus has driven home that the ‘living for today’ attitude is great, but what happens when tomorrow does come? Are you still able to fulfil your obligations? Are you still able to do the things you love with your friends and family? Are you able to maintain your lifestyle?” asked Green.

He said that the crisis will, again, underscore that we’re increasingly living in an era of personal financial responsibility.

“For instance, our experience suggests that working-age people do increasingly understand the need to save for their retirement.

“They know that governments are unlikely to be able to support them as they have done for generations before due to ageing populations and shrinking workforces; that living, health and care costs will increase significantly; that company pensions are less generous, if they exist at all; and that we’re all living longer, meaning that accumulated funds need to go further.”

The deVere CEO concluded that the pandemic has brought savings back into sharp focus.

“It is never too late to start saving for your future, and the sooner you start, the easier it will be to reach your long-term objectives.”