Public sector workers 'should think about saving'

By Sarah Engle, Tue 10 Aug 2010 - Published in Banking

People should be motivated to save more by the looming cuts in public sector spending, according to an expert.

Adrian Lowcock, senior investment advisor at Bestinvest, said the coalition government's plan to lower the UK's debt by reducing its spending will mean that many public sector workers have become concerned about their future.

"Something like that should actually increase savings, because people who are concerned about it will be more likely to save, to prepare for their biggest fear ā€“ losing their employment," he commented.

Mr Lowcock also claimed that long-term saving rates may be down at the moment, because this is the time of year when people tend to pay for their holiday and put aside spending money for it.

Recent figures published by Nationwide Building Society claimed that 21 per cent of people believe they will be saving less in six months' time than they are now.

This is an increase on the 18 per cent who thought that in the first quarter of the year.

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