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
Taken to heart: Inequalities in heart disease in Scotland
More than 7.6 million people across the UK live with cardiovascular disease (CVD), around twice as many as live with Alzheimer’s disease and cancer combined.Skills passports: An essential part of a fair transition
This month, government will publish its Clean Energy Workforce Strategy. This plan covers two aims. First, filling the growing demand for skills in clean energy industries is essential to keep on track to reach the government’s clean power…Fixing the leak: How to end the £22 billion annual taxpayer losses at the Bank of England
The Bank of England increased its interest rates over recent years, aimed at reducing inflation. But this has also had an unintended effect on the Bank of England’s massive government bond buying – ‘quantitative easing’ – programme.