A single financial guidance body delivered by both the public and private sectors could help address the “chronic economic crisis of under-saving” in the UK, an industry body has told the government.
Tisa, the Tax Incentivised Savings Association, says financial guidance must be made available to everyone through various channels if the country is to tackle the low level of savings.
Tisa was responding to the UK government’s ‘Public financial guidance review’ which sought opinions on how the government could deliver debt advice and guidance about money and pensions.
As well as focusing on financial guidance and helping people in debt, the single financial guidance body should encourage savings and protect consumers from scams and fraud, Tisa said.
Tisa says there are one-third of UK households that have no savings at all, and 66% with savings of £1,500 or less
Charles McCready, director at Tisa, said the government-backed bodies involved in financial guidance – the Money Advice Service, The Pension Advisory Service and PensionWise – have provided “valuable guidance to consumers and encouraged higher levels of saving, both for retirement and to provide resilience against the life emergencies”.
He added: “We believe that their services should be consolidated into a single financial guidance body for greater consumer clarity and engagement.” This is in line with the government’s own proposal.
McCready said guidance should be delivered through multiple channels including face-to-face and call centres, and be delivered in conjunction with the private and public sectors to “ensure a consistent consumer experience underpinned by the latest relevant technology and products”.
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