More in this section

Understanding your views in an extraordinary time

Over 1,000 members completed our recent Covid-19 survey entitled "Understanding your views in an extraordinary time". This generated some very informative views on how Covid-19 has affected you and your families and how it's influenced your attitudes to savings and financial planning and how the UK Government should address the UK's books. 


Executive Summary

The long term political and economic fallout of Covid-19, is of deep concern to Family Building Society members. Increasing tax for the most wealthy is the way to pay off Government debt according to 61%, of respondents.

Other suggestions included closing tax avoidance loopholes and the cancellation of large state-funded infrastructure projects. 

Further reflecting the economic gloom, more than half said that their immediate and wider family members had been either furloughed or were on reduced income. Around a quarter provided their children or grandchildren with financial support, mainly gifting cash, but also funding day to day living expenses. 

Respondents comprised an older and mainly retired demographic. There was a clear understanding that the family was the main consideration in respondents’ financial planning and there was a greater awareness that children may need financial support if the current situation continues. “Family will always come first,” was a common theme from those surveyed.

While updating wills and gifting money to the next generations made sense from an inheritance tax point of view, many also have been forced to reassess their retirement and investment plans, and for some, the crisis has highlighted the importance of a long-term saving strategy with several considering investments in property to provide additional income while interest rates remain low and the stamp duty holiday remains in place.

 

Our members views on: 

Savings       Helping Family     Investment & Retirement Planning            

Balancing the UK's Books 

 

Savings

Graph A Covid 19 

(Note: respondents were able to select multiple choices)

Your comments:

"A change of perspective but plans remain the same"

"We are cushioned and protected by our previous savings behaviour"

"Long term savings goals remain to save as much as possible"

"I already take a long-term view on savings. My retirement plans are still the same and I have already helped my family financially as and when required."

 

Graph B Covid 19

 

Your comments:

"The pandemic has made me realise even more that it is always important to save for a rainy day or the unexpected."

"I think it's more important to save than ever due to the possibility of another lock-down and the possibility of being made redundant."

"It makes it more important to obtain the best interest rate for investments providing monthly income."

"I've been able to save more, simply because I've spent less"


Helping Family

Comprising an older and mainly retired demographic, just over half of respondents said that their immediate and wider family members had been either furloughed or were on reduced income. Around a quarter provided their children or grandchildren with financial support, mainly gifting cash, but also funding day to day living expenses. Further supporting the pivotal role that families have to play, when asked, many stated that it was mainly the younger generations who have been most badly affected.

 

Graph C Covid 19 v2 

(Note: respondents were able to select multiple choices)

Your comments:

"I've helped family members financially in the past and offered to do so in present circumstances."

"Should any family member require financial assistance at any time, within reason I would assist, but that has always been the case, so in that sense the pandemic has not changed my views."

"We will help our family financially as appropriate and as required. This has always been the case. Our intentions remain as before, i.e. to provide whatever financial assistance to our children as needed."


Graph D Covid 19 

(Note: respondents were able to select multiple choices)

 

Investment & Retirement planning

While updating wills and gifting money to the next generations made sense from an inheritance tax point of view, many also have been forced to reassess their retirement and investment plans, with several considering investments in property to provide additional income while interest rates remain low and the stamp duty holiday remains in place.

 

Graph E Covid 19 

Your comments:

"Planned house move to downsize deferred which in turn has put back full retirement plans. Was due to go to market in March. Now delayed to next year to give best possible chance of virus second spike/vaccine all having played out."

"More detailed look at pension arrangements with consideration to my age and availability of work up to my planned retirement date"

"Pandemic has made me realise I do not want to retire."

 

Graph F Covid 19 


Your comments:

"My partner was looking to retire in next few years but value of pensions have fallen dramatically and we don't know if this will now be possible."

"The sharp drop in the financial markets has made me more conscious of my retirement, I wanted to retire this year but will now have to work into 2021"

"Slightly less secure - only because interest rates have gone to rock bottom; was rather higher even after the 2008 crash. Interest rates are geared around borrowers, not savers"

"The impact on the economy is significant and will continue to be so for very many years to come.”

 

Graph G Covid 19 

Your comments:

"Need to consider other ways to save for retirement than a stock market pension (depleted by 40% by initial stock market declines). Different passive income streams would be desirable ie rental income from a second property.

"Giving consideration to withdrawing one company investment and perhaps purchasing instead holiday home in Europe which could be rented out in high season."

"I'm considering buying an investment property with savings/pension."


Balancing the UK's Books

The long term political and economic fallout of Covid-19, is of deep concern. 61% want government Covid-19 borrowing paid off by raising taxes for the wealthy rather than kick the problem down the road for the younger generation to deal with.

How should we pay back the Covid-19 debt?


Graph L Covid 19 v2 

(Note: respondents were able to select multiple choices)

Your comments:

“A wealth tax and/or income tax to me seem the most reasonable for those of higher income and with assets, of which I consider myself to be one.”

“Raise higher rate tax for higher earners. Remove the ceiling on national insurance contributions.”

“Further reduce the tax-exempt ceiling of Pension Schemes for the Wealthy”

 

Notes:

  • This survey was carried out between 20 - 30 July 2020.
  • Number of respondents: 1054
  • This survey was sent to a selection of our members who were randomly chosen. 

 

Family Building Society
Ebbisham House
30 Church Street
Epsom
Surrey KT17 4NL
Follow Us