Research finds 39% of teachers commit to monthly saving amount without financial forethought
A survey of over 800 UK teachers has found that 39% selected their monthly saving amount without any financial planning or consideration for their disposable income. The research, commissioned by financial services provider Teachers Assurance, also found that teachers were saving in largely cash based accounts despite admitting a strong desire to beat inflation.
Encouragingly 78% of teachers were saving towards their future, with 36% saving more now than they were two years ago. Despite this many teachers weren’t considering their financial obligations and disposable income in advance of saving money, meaning 71% admitted to experiencing ‘erosion’ of their savings for various reasons.
In addition teachers were largely not considering how to get the best possible return on their money, with 53% saving in an account alongside their bank account and a further 20% keeping their savings in their everyday current account. A total of 47% had also chosen to save in a cash based NISA, despite the fact that 31% of teachers were trying to earn an interest rate over and above inflation and a further 18% wanted interest in line with inflation.
Sam Richardson, Head of Membership Relations at Teachers Assurance comments: “It’s reassuring to know that the majority of teachers are saving for the future but it pays to take some time to think about why you’re saving and how to make the most from your money. The UK interest rate is currently at 0.5% while inflation has risen to 1.3%[1], meaning the value of cash savings may be eroded over time. While cash investments can provide a short term home for savings, in order to maximise their potential return teachers may wish to consider stock market based investments.”
Just 12% of teachers questioned by Teachers Assurance said they had money invested in stocks and shares. Many were concerned about taking risks, with more than a third (36%) saying they wanted to be sure they wouldn’t lose the money. However there are options for cautious investors, with a range of investment products available that come with reassuring safety nets and guarantees.
Teachers who participated in the survey were also asked to consider whether they would be prepared to forgo treats in order to save more. While 46% said sacrifices wouldn’t be an option for them, those who were happy to consider cuts would most likely attempt to give up takeaways and treat foods (74%).
Teachers Assurance offers a range of savings, investments and insurance for individuals and their families across the UK. To find out more about Teachers Assurance visit teachersassurance.co.uk or call 0800 056 0563. Alternatively, follow the company on Twitter and Facebook; simply search for Teachers Assurance.
[1] Source: BBC Economy Tracker as at 5th December http://www.bbc.co.uk/news/10612209
For further information:
Laura Bentham, PR Team Leader
01202 435 112
lbentham@teachersassurance.co.uk
teachersassurance.co.uk/press
Teachers Assurance is a trading name of Teachers Provident Society Limited (TPS), an incorporated friendly society No. 372F. Authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority, entered on the Financial Services register no. 110009. Registered in England and Wales. Registered Office: Tringham House, Deansleigh Road, Bournemouth, BH7 7DT. 2351214.
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