A new study from RL360° Quantum suggests people are becoming more proactive in their approach to saving. RL360° looked at data from more than 33,000 Quantum policies taken out over the last 20 years and found that people are now saving considerably more than they used to. In addition, they start saving from a younger age and are saving for longer than clients who purchased policies in the 1990s.
The facts and figures
The research revealed that clients are now saving 54% more and are saving for 40% longer. Also, the average age when people take out a Quantum policy is down from 39.59 years to 38.68 years. Another notable finding was that an increasing proportion of savers are female. Women now make up 27.4% of policyholders, compared with 16.4%.
RL360° also discovered that paying monthly is more popular than it used to be. The proportion of people doing this has increased from 76.4% to 95.2%. In addition, 72.7% per cent of policyholders now pay by credit card.
The study showed that nearly 7 in 10 UK expats who purchased a policy in the 1990s are still living abroad, with clients based in a total of 114 different countries. The most popular of these is the United Arab Emirates. It was also revealed that more RL360° Quantum policies than ever before are now being taken out by people based in the Far East.
People are living longer
Nigel Danzelman, Marketing Services and Communications Manager at RL360°, suggested that one of the reasons why people are saving more is that they are living longer. Because of this, they realise the importance of being shrewd in their approach to financial planning and in building up money to supplement their incomes in retirement.
He also suggested that a lack of trust in state pension benefits, rising state pension ages and a general fall in the level of state benefits provided by governments around the world have contributed to the trend.
Commenting on the appeal of Quantum for international savers, Mr Danzelman added: “As most of our expat clients tend to remain abroad in the long term, having a flexible, medium to long term, multi-currency saving plan can be a really attractive proposition.”
Royal London 360° was set up in 2008 and it changed its name to RL360° following a management-led buyout that took place in November 2013.