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EDINBURGH, SCOTLAND, August 10, 2011 /24-7PressRelease/ -- Standard Life has found that the majority of UK consumers can spot a good deal when it comes to a holiday, but are likely to miss out on a good deal when it comes to their finances.
In a UK wide consumer poll and prize draw in which 8,500 people took part Standard Life found that almost seven out of ten (70%) people would choose a holiday of a lifetime worth GBP5,000 even if they had to wait five years, rather than settle on a luxury short break this year worth GBP640*. GBP5,000 is how much a pension could be worth if GBP640 was invested into a pension plan each year for the next five years**.
The poll and prize draw, run by long term savings and investment provider Standard Life, highlighted that the UK public know how to spot a good deal when offered one and are willing to wait five years to make their holiday dreams come true. But this savvy forward looking culture is yet to filter through into finances, with almost half (45%) of Brits planning just one to 12 months ahead and a further one in six (17%) failing to make any financial plans at all, according to Standard Life's research***.
Standard Life's John Lawson said: "Consumers are keen to spot a good deal which is why voucher codes and group buying websites have become so popular. But many only apply this bargain hunt culture when buying goods, not when it comes to their financial planning. Consumers who take a short term view to their personal finances are likely to miss out on long term tax efficient products that offer far greater benefits than your standard savings account. For example, if you're a lower rate tax payer and pay into a pension, the government gives you 20% extra on top straight away in tax relief. That means a pension contribution of GBP100 a month is instantly worth GBP125 a month. People's great bargain hunting skills are being wasted if they are not picking out these great investment deals."
Notes to Editors:
* The average amount British households spend on a package holiday each year based on ONS Stats.
** For illustrative purposes only, assuming 5% annual investment growth, 4% average annual pay rise each year and basic rate tax relief on pension contributions.
*** According to the Standard Life omnibus research undertaken between 23-25 March 2011, 45% of people plan their finances one month to 12 months ahead; 17% of people don't plan their finances at all; 22% plan between a year and five years ahead; and just 16% of people plan over 5 years ahead. Total sample size was 2,057 adults in the UK.
About Standard Life:
Standard Life is a leading long term savings and investments company headquartered in Edinburgh and operating internationally. Established in 1825, Standard Life provides life assurance, annuities, life insurance, savings products such as an ISA, investment funds, tax efficiencies, pensions including self-invested personal pensions (SIPP) company pensions and employer pensions, and investment management to around 6 million customers worldwide.
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