Press Release
CII research paper shows public would use Money Guidance
3 July 2008
A national money guidance service of the sort proposed by the Thoresen Review would provide practical help for consumers, according to a report published today by the Chartered Insurance Institute. The study involved a poll of over 1000 consumers to gauge their attitudes and confidence in money matters, especially in the light of the credit crunch.
The overall majority of consumers (58%) feel less financially secure as a result of the worsening economic climate with over one in 3 (35%) feeling less secure in their jobs. In addition nearly two-thirds of consumers (65%) stated they would experience difficulty dealing with even modest rises in interest rates. The study shows areas where a national money guidance service could help people deal with the difficulties presented by the current economic downturn.
Other findings include:
• Nearly half (45%) of consumers said they would use the proposed “Money Guidance” generic advice system;
• Almost 2 out of 3 consumers (61%) lack confidence in the Government’s oversight of the banking system;
• Over half (53%) are less confident that their savings are safer than 12 months ago;
• Consumer confidence generally has been eroded over the past year with 58% believing they are less secure financially;
• One in 10 homeowners are worried their home might be repossessed;
• The Citizens Advice Bureau (CAB) is the most relied upon source of financial advice ahead of family and friends.
CII President, Lord Hunt of Wirral, welcomed this report: “This is a critically important survey, coming at such a crucial time. With savings so low and borrowing so high, it is vitally important we should keep the closest possible eye on public opinion. As the CII goes about its work promoting the public interest by leading the profession, this kind of detailed research will prove invaluable.”
CII Director of Policy and Public Affairs David Thomson said, “In the current economic climate, characterised by rising oil and food prices, a national service that provides independent, accessible and above all well-trained guidance on financial matters will be a key weapon in the consumer’s armoury for financial capability.”
The full report can be viewed at www.cii.co.uk/research
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