Designing a Life-Course Savings Account: How to help low-to-middle income families save more
Article
Families in the UK, especially low-to-middle income families - the median family income in 2008/09 was around £26,000 - find it hard to save, other than for short-term events such as Christmas and family birthdays. Among the reasons they give is a belief that the right savings vehicle does not exist for them.
Based on workshops with would-be service users and providers, this report identifies the key features of an attractive and feasible 'life-course savings account' and proposes two specific savings products: a Lifetime Bonus Savings Account, aimed at encouraging saving, particularly to help families cope with emergencies, and a Long-term Investment Account, designed to replace the existing cash ISA scheme for savers at a higher level. These kinds of savings products balance rewards for savers against the cost to the public purse.
Related items

Taxing choices: Taking the public’s temperature ahead of the budget
The stakes for a government are rarely higher than at a budget. Every chancellor has dealt with this differently. Ken Clarke would draft his budget speech with cigars and whisky, Gordon Brown pored over every word in what officials called…
Great expectations: Rejuvenating the national debate in Scotland
Fresh IPPR Scotland polling shows that politicians must raise their game if next year’s election is a to be serious debate about the challenges facing Scotland and potential solutions.
Unfinished business: Redressing inequality in British policy and Black lives
As conversations about race and equality continue to evolve, Black History Month remains a powerful invitation to pause, reflect, and recommit to progress.