Aegon warns government to make savings a priority

THE UK savings crisis will deteriorate further unless the government urgently makes it a priority to boost the savings culture, Edinburgh-based Aegon UK has warned.

In a savings white paper published today, the insurer calls on the new government to boost the availability of financial advice and to make it easier for people to save by introducing a "save back" option alongside existing retail cash back services.

Among the report's other recommendations are a re-introduction of school savings clubs, more demanding financial education targets and the removal of the existing 150 tax-free ceiling on financial advice in the workplace.

The white paper also proposes a workplace "debt to saving" system in which employees repay their debts through contributions to their workplace pension scheme, with a caveat that the contributions become positive savings when the debt is paid off.

Francis McGee, head of corporate affairs at Aegon, said: "George Osborne has spoken about the need for a new savings culture and how it is an essential ingredient for a sustained and balanced recovery, but we have not heard any detail."