Pandemic pushes money saving ahead in priorities

By Grace Ormsby

April 07 2020
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There’s been a “significant rise” in demand for savings solutions as a result of the COVID-19 pandemic, a financial advisory organisation has found.

Pandemic pushes money saving ahead in priorities

Across March, deVere Group has reported a 28 per cent increase in enquiries about savings plans.

It’s not an entirely unexpected phenomenon, with deVere’s CEO and founder, Nigel Green, commenting that he had “noticed this same trend when the 2008 financial crash struck”.

“That crisis, too, focused minds on the importance of saving.”

“Due to the terrible COVID-19 emergency, many more people are suddenly and unexpectedly feeling the financial pinch, the pandemic has put their finances under strain,” the CEO highlighted.

“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,” Mr Green stated.

“Since the coronavirus outbreak began to have an all-consuming international impact in late February/early March, we noticed a surge in clients seeking advice on savings solutions.

“Then, when the coronavirus was officially declared a ‘pandemic’ by the World Health Organisation in the second week of March, savings planning enquiries further increased sharply,” he continued.

According to the CEO, the financial impact of coronavirus is driving home an understanding that while the “living for today” attitude is great, “what happens when tomorrow does come?”

“Are you still able to fulfil your obligations? Are you still able to do the things you love with your friends and family? Are you able to maintain your lifestyle?”

He believes the crisis will underscore an acknowledgement “that we’re increasingly living in an era of personal financial responsibility”.

“Working-age people do increasingly understand the need to save for their retirement,” Mr Green said.

“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.”

Combined with the pandemic, it has brought savings back into sharp focus for Mr Green.

“It is never too late to start saving for your future, and the sooner you start, the easier it will be to reach your long-term objectives,” he advised.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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