This week the government-backed Money and Pensions Service (MAPS) - the consumer personal finance guidance body - announced a 10 year strategy to transform ‘national financial wellbeing’ for millions of consumers.
The body says 22m do not know how to save properly for retirement and 11.5m others have less than £100 in savings to fall back on and this needs to change.
MAPS plans to work with the industry to help millions more save and and invest, protect their families and avoid financial disaster.
Keith Richards, chief executive of the Personal Finance Society, backed the move.
He said: “As the sector’s main professional body (we) fully support the Money and Pensions Service’s aim to transform the nation’s financial wellbeing in a decade.”
“The Personal Finance Society will continue to engage with the Money and Pension Service on how one of our pro-bono programmes, ‘My Personal Finance Skills’ can assist the guidance body in their goal of ensuring more young people receive a meaningful financial education.”
Sian Fisher, chair of Insuring Women’s Futures and chief executive of the Chartered Insurance Institute, said: “I am pleased the Money and Pensions Service’s UK-wide strategy to transform the country’s financial wellbeing in a decade will examine the impact gender has on financial resilience.
“As Chair of the Insuring Women’s Futures initiative I know some of the issues needing to be addressed to improve female financial resilience are deep-rooted.”
“As CEO of the CII I will work with MAPs on how to empower women to come together to talk about their financial life, make the right decisions and take action that will improve their financial future.”
Yvonne Braun, the ABI’s Director of Policy, Long-Term Savings and Protection said: “The strategy provides a strong basis for government, the financial services sector and the third sector to collaborate to improve the financial wellbeing of the nation.
“The insurance and long-term savings industry has a key role to play in helping people thrive, from saving for a financially secure retirement, and offering peace of mind in case of illness and injury, to protecting their assets.
“We are also pleased that the strategy will address wider themes like gender and mental health problems, both factors that can worsen financial difficulties. We look forward to playing our part in MAPS’ important work.”
Steven Cameron, pensions director at Aegon, said: “Many people are living life on a financial cliff edge with debt and loans, coupled with the burden of financial obligations and commitments, impacting their ability to control their finances and respond to financial unpredictability.”
“Improving financial wellbeing is a win / win for individuals, employers and the UK economy. We encourage MAPS to include the workplace in its strategy.”
Kay Ingram, director of public policy at employee benefits and financial advisory firm LEBC, also welcomed the announcement but says financial advisers can do more to improve access to financial advice and guidance.