Recession prompts rise of financial rationality 

The downturn has prompted UK adults to get a grip on their day-to-day finances, as well as giving serious thought to their savings and pensions, finds Friends Provident.

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The downturn has prompted UK adults to get a grip on their day-to-day finances, as well as giving serious thought to their savings and pensions, finds Friends Provident.

The Generation Recession Report, commissioned by Friends Provident and carried out by the Social Issues Research Centre, claims that the recession has come as a wake-up call for many, as people recognise that their lifestyles cannot be maintained permanently without greater financial security.

Two-thirds (68 per cent) of the British public are still worried about the recession and experience negative thoughts and emotions in relation to it. For example, one in five (20 per cent) people have been feeling more depressed about life in general since the start of the recession.  

Despite this, a fifth now feel a greater need to look ahead and plan for the future as a result of the recession, and a further 33 per cent have started saving more since the downturn took hold.

Of those UK adults who have a pension and make additional payments, 30 per cent have continued to do so.
Simon Clamp, managing director UK at Friends Provident, says, ‘Increasing financial awareness among consumers can only be a good thing, and this is demonstrated by the numbers who are reducing their debts and becoming more focused on their futures and saving for the long term.

‘It is particularly encouraging to see the positive impact that the recession has had on the way in which young people regard and deal with their finances. A long-term benefit of the recession may be a generation of younger people who have learnt important financial lessons.’

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