16 June 2021
Don’t give up your new savings habit!
As we begin to emerge from the clutch of the COVID-19 pandemic, research indicates that new ‘accidental savers’ will continue to play it safe.Don’t give up your new savings habit!
While many people have faced greater debts, redundancy, or reduced income during furlough, others have seen their financial position improve and, as a result, millions of people have saved significant sums of money during the pandemic. Less commuting, fewer holidays and less meals out have all helped to make the financial pots of these savers healthier.
With the gradual removal of government restrictions and a thriving vaccination program, the temptation may now be there for savers to spend those pots rather than continuing with their new found savings habits.
However, a survey of more than 3,000 people* found that 74% of those asked wanted to save more than they had pre-pandemic. The risk and uncertainty highlighted by Covid meant many were keen to build a financial cushion.
Foresters Friendly Society is no exception to this trend. During 2020 and 2021, we have seen a significant increase in new members joining the mutual financial services provider to place their hard earned money into savings plans for the mid-long term. These types of investments, which pool savers’ money in to a with-profits fund which invests in a variety of assets, offer a higher potential of returns than their cash-equivalents, like Cash ISAs, however the key is really to hold the money in the plan for as long as possible.
Sally Waterfield, Head of Marketing at Foresters, explains, “We are thrilled that so many new members have seen Foresters as a reliable, trustworthy and alternative financial services provider to the more obvious high street banks. At the same time, our existing members who have been fortunate enough to have been unaffected financially by the pandemic have been paying more into their savings plans.
As a mutual, owned and run for our members, everything we do is about providing added member value whether that be in the form of superior customer service or through our member benefits package, Foresters Extras, which provides a range of benefits that make a difference to member’s lives every day. For our less fortunate members who have been affected by the pandemic, we have been able to provide much needed financial support through our discretionary grants to assist with paying bills, buying groceries or support through furlough.
Our savings and investment plans are designed to be held for the mid-long term so it is pleasing that the research indicates that these new savers are planning on continuing their new-found savings habits. As more of society opens up and we hopefully step in to a new ‘normal’ which may well include added benefits of a switch to greater home working which with it brings financial benefit, it will be wise for savers to continue to build a financial cushion to ensure they have future financial security”.
Other reasons to continue saving with Foresters
- In a step to demonstrate Foresters commitment to responsible investment, we are proud to be a signatory to the Principles for Responsible Investment (PRI).
- We partner with AXA Investment Managers, which manages €730 billion (£650 billion) globally, and specialist investment managers in European SME Loans and UK Infrastructure. These partnerships have helped to give us a unique competitive advantage over similar providers to improve the competitiveness of our products to new members as well as the returns that can be achieved for our existing members.
- In 2020, we paid out over £1.7million to members in the form of discretionary grants (which do not require paying back). We have a wide range of ways we support our members through the positive and not so positive times.
Plan returns are not guaranteed and will depend on the performance of our Order Insurance Fund and how we decide to distribute any profits. Capital at risk.
The membership benefits we provide aren’t regulated by the Financial Conduct Authority or the Prudential Regulatory Authority, and are regularly reviewed by us to ensure they are relevant to our members.
*Research conducted by Ipsos MORI.