Royal London’s Riley finds most savers put holidays above other financial commitments
Tuesday, 27 November
A survey by Riley, the individually insured investment from Royal London, has found that the majority of people have a short-term attitude to saving, prioritising holidays above their own and their family's financial future.
The research, conducted by YouGov on behalf of Riley, asked over 2,000 households a range of questions about their finances. When asked to select all the things they saved their money for, 55% of respondents said holidays while a further 30% said luxury items, compared with 34% saying retirement and just 28% stating their family's future.
The survey also found that 61% of people put most of their money in bank or building society accounts and 9% in property, with just 6% saying that they invested most of their money in a fully diversified portfolio of stocks and shares, property and cash.
Roger Edwards, Head of Marketing Development, commented:
"The survey suggests that most people have quite a short term attitude to saving, preferring to treat themselves with holidays and luxury items rather than put money aside for their own or their family's financial future. This is supported by the fact that the vast majority prefer to invest in banks and building societies rather than in longer term investments such as the stock market.
"However, with Riley, which is available through IFAs, investors have the unique benefits of control over the level and timing of protection and the ability to change that protection at any time. So they can protect enough of their savings to pay for their dream holiday and at the same time invest for the future, with potentially higher returns through stockmarket exposure."
Riley, which is a life insurance bond with a minimum investment of £10,000, offers investors the opportunity for stockmarket gains with a flexible level of protection.The chosen protected amount is insured by putting part of the original investment into a fund which holds protection contracts provided by a leading investment bank.The remainder of the investment goes into a choice of two funds: the FTSE 350 Tracker Fund, managed by RLAM (Royal London Asset Management), or the FTSE 350 Managed Fund, managed by Andy Simpson at Schroders.
Investment returns are not guaranteed and investors may not get back the full amount of their investment.IFAs can get Information about Riley from their Scottish Life consultant or by going to www.thelifeofriley.co.uk
Note:
The FTSE® trademark is jointly owned by the London Stock Exchange plc and The Financial Times Limited and is used by FTSE International Limited under licence."FTSE350" is a trademark of FTSE International Limited.The FTSE 350 Index is calculated by FTSE International Limited.FTSE International Limited does not sponsor, endorse or promote this product and is not in any way connected to it and does not accept any liability in relation to its issue, operation and trading.All copyright in the index values and constituent list vests in FTSE International Limited.The Royal London Mutual Insurance Society Limited has obtained full licence from FTSE International Limited to use such copyright in the creation of this product.
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For further information please contact:
Royal London
Alasdair Buchanan
Group Head of Communications
Tel: 0131 456 7133
Roger Edwards
Head of Marketing Development
Tel: 0131 456 7301
Polhill Communications
Jenette Perry
Tel: 020 7655 0530
Editor's Notes:
1Who's behind Riley?
Scottish Life is a division of Royal London and markets products produced by Royal London.Scottish Life is responsible for the marketing, distribution and servicing of the Riley bond.
RLAM is the specialist asset management company within the Royal London Group.RLAM's clients include FTSE 250 companies, local authorities, universities and charities; wealth managers and other financial advisers.RLAM manages over £32.3 billion of assets, employing more than 50 experience investment professions (as at 30 September 2007).
Schroders is a global asset management company with £137.7 billion under management as at 30 September 2007.Its clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors. Schroders applies its specialist asset management skills in serving the needs of its clients worldwide. With one of the largest networks of offices of any dedicated asset management company and over 250 portfolio managers and analysts covering all the major investment markets, Schroders offers its clients a comprehensive range of products and services. Further information about Schroders can be found at www.schroders.com
2Royal London Group is a specialist financial service provider. Its businesses focus on those sectors of the market which value premium propositions, operating through a number of brands:
Scottish Life – UK pensions market
Bright Grey – UK protection market
Scottish Life International – offshore investment markets
RLAM – fund management
RLAS – life and pensions administration
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £32.9 billion.Group businesses serve around three million customers and employ 2,580 people.(Figures quoted are as at 30 September 2007).