TISA Calls for More Education on Financial Literacy and Immediate Implementation of Dilnot Recommendations
Prakash Chandramohan, Strategy Director, responding to the Chancellor’s Autumn Statement: TISA is supportive of the significant extension of financial support that has been announced by the Chancellor to help people with their bills. The global cost of living crisis has however highlighted just how susceptible UK household budgets are to shocks, and the costly nature of Government intervention.
It is critical that the Government use the following years to lay the foundations for households to recover from the current crisis in a manner that improves overall household financial resilience. Measures targeted at improving financial literacy levels improving access to guidance that helps people make good financial decisions and incentivising a culture of saving and investment are crucial for the UK to become a prosperous society.
We do not know when the next unexpected crisis will occur, but when it does, we need UK households to be in a better financial position than they are in today and enable them to have more control over their financial futures.”
Responding to the Chancellor’s Autumn Statement, Renny Biggins, head of retirement at TISA, said: “The Chancellor’s Autumn Statement and the accompanying OBR forecast will be a bitter pill for many consumers, with significant decreases in real incomes over the coming years. However, within that bleak picture, at TISA, we are pleased to see several important commitments from the Government maintained. Chief among these is the state pension triple lock.
The State Pension makes up the largest part of post-retirement income for most of the population. Given rampant inflation, it is therefore vital that this uprating is maintained to ensure retirees can count on a steady income stream. It was also announced that the State Pension Age review is due early next year, and we will be watching closely what impact the triple lock and ongoing macro-economic factors will have.
Social care is another crucial, and unavoidable, issue in the Chancellor’s in-tray. Given the enormity of the economic challenges the Government and country is facing, we appreciate the reasons for which the national rollout of social care charging reforms has been pushed back by two years. However, the Dilnot recommendations for greater national awareness on how to plan towards social care should not be delayed. Social care and associated expenses will impact many in later life and ensuring that consumers are aware and prepared for the financial consequences must remain a focus.
Finally, we are pleased that the pension allowances are not reduced or frozen. This would have had a negative effect on those who are diligently saving for their retirements and even at their current levels, are no longer targeted at higher earners specifically.
We look forward to further analysing the details of the Budget and will be working with the Government to find ways of assisting consumers through this difficult time.”