Despite a huge rise in people wanting to make more of their savings, many have failed to hone their financial strategies to deal with the impact of the coronavirus crisis.
That’s the message from Nigel Green, CEO and founder of deVere Group, one of the world’s leading financial advice firms for expats.
He revealed that deVere Group had seen a 28% surge in inquiries about savings plans, but still too few people were taking any action to safeguard their finances.
“Since the coronavirus outbreak began to have an all-consuming international impact in late February, we noticed a surge in clients seeking advice on savings solutions,” said Green.
“When coronavirus was declared a pandemic in March, savings planning inquiries increased sharply.”
Same trend followed the last financial crash
“Due to the terrible Covid-19 emergency, people are suddenly and unexpectedly feeling a financial pinch.
“But this has had the effect of more and more of us thinking about and valuing more than ever what really matters to us.
“For most people, this includes ensuring that we and our loved ones are financially secure to have the opportunities and lifestyles that we desire.
“We noticed this same trend when the 2008 financial crash struck. That crisis too focused minds on the importance of saving.”
Saving for tomorrow instead of spending today
Green considers coronavirus has changed priorities for many people who will need to overhaul their lifestyle and finances to cope.
“The financial impact of coronavirus has driven home that the living for today attitude is great, but what happens when tomorrow does come? Can you fulfil your obligations? Can you still do the things you love with your friends and family? Can you maintain your lifestyle?
“The crisis underscores that we’re increasingly living in an era of personal financial responsibility.
“For instance, our experience suggests that working-age people do increasingly understand the need to save for their retirement.
“They know that governments are unlikely to be able to support them as they have done for generations before due to ageing populations and shrinking workforces; that living, health and care costs will increase significantly; that company pensions are less generous, if they exist at all; and that we’re all living longer, meaning that accumulated funds need to go further.”