No Re-Run of the Roaring 20s As Savers Stay Cautious

Hedonists can put hopes of a post-pandemic "roaring 20's" to bed, as new research finds that most of us would rather save money than throw caution to the wind as life returns to normal.

More than half of people (51%) surveyed by Ipsos MORI for the Nationwide Building Society's UK Consumer Insight Panel said they don't have any plans to part with money they saved during the pandemic.

This is despite the fact that the record low 0.1% interest rate set by the Bank of England makes it one of the worst times to save.

Some six million people became 'accidental savers', putting more money than usual into savings during the pandemic as social distancing measures forced them to cut back on spending, reported financial consultancy LCP in February.

For millions of others- especially those on low incomes- borrowing shot up instead over the same period.

However, for those who have been able to save, Ipsos MORI reported that the pandemic had left them wary of the future, with nearly 9 in 10 (89%) saying they now feel additional pressure to save for coping with unexpected events.

Nearly 8 out of 10 people (79%) said they wanted to save enough so that they wouldn't have to worry about losing their job- despite the same group reporting that they expected the UK's economy to improve over the next 12 months.

Even with this sunny outlook, researchers found that the pandemic events have caused many to adopt a more conservative approach to money.

Some three-quarters say the pandemic has changed their financial attitude, given the risk and uncertainties it exposed them to, and more than half now say that "financial well-being" is all about having a good safety net.

Ben Page, CEO of Ipsos MORI, said:

The public are not yet ready for a Roaring Twenties moment: prudence on saving and spending prevail, and hedonist tendencies are at a 20-year low.

For the past 20 years, Ipos MORI has been asking consumers whether they agree or disagree with the statement 'the important thing is to enjoy lie today, tomorrow will take care of itself; for the first time since 1999, more than half of those asked disagree with the statement.

Men on low incomes who were put on furlough during the pandemic were found to be the least likely to have saved - and also the most likely to reject the new cautiousness dominating post-pandemic attitudes to money.