30 June 2009
There is an increasing trend of people turning to their savings to fund their lifestyles, rather than looking to the long-term, it has been revealed.
The LV= Look After What You Love Index shows two-thirds of people have had to reassess their finances in recent months and 33% fear their income may be impacted by the financial crisis.
Mike Rogers, LV= Group Chief Executive, commented: "Rather than doing away with valuable insurance or eating into savings, it is important for people to take stock of their financial situation.
"Everyone can take some financial steps, however small, towards protecting the things they love most in life."
A quarter of those questioned admitted to using their savings to help ends meet, while some have cut their insurance to save money.
The NS&I recently revealed that Britons set more money aside at the start of this year than they did in 2008.
Rumina Hassam, uSwitch savings expert, comments: "It is imperative that consumers are prepared for the future, whether it is by saving into a rainy day fund or putting aside money for retirement. By spending savings on maintaining a certain lifestyle, consumers could be setting themselves up for financial difficulties in the future. If you feel tempted by spending savings, it may be worth putting your money into a fixed rate bond instead of an instant access savings account where access to the money is more difficult and you are therefore less likely to withdraw it unless absolutely necessary."