Almost half of consumers would cut back on their pension to save cash
Equifax research reveals how short-term economic choices are being made which could have long-term impact on wellbeing
According to the latest figures* from Equifax, the leading online credit information provider, nearly half (44%) of consumers would choose to stop paying into their pension in order to make significant savings if their financial situation changed. Over a quarter (26%) would stop paying life insurance and more than 1 in 10 would stop paying their home contents insurance.
These latest figures suggest that consumers are finding it difficult to balance the long term consequences of short term financial cutbacks.
“Our research conducted in February this year presented a very positive picture of the way in which consumers are managing their existing financial commitments”, explained Neil Munroe, External Affairs Director for Equifax. “A third of respondents said they have no debt on store cards, credit cards, payday loans or other credit agreements over 12 months or less. And 40% have the same amount of debt that they did 12 months ago.
“But it is probably a sign of the times that, if faced with the need to make significant savings on outgoings the financial commitments for the longer term would be stopped first. People need to remember that cutting out things such as pension payments or not paying for home contents insurance, could lead to much bigger costs later down the line.
“Consumers may well find it useful to look at their credit report to gain an overview of their financial commitments, enabling them to prioritise some payments and make savings on outgoings that won’t impact their long-term financial security.”
The Equifax Credit Report is accessible for 30 days free simply by logging onto www.equifax.co.uk. If customers do not cancel before the end of the 30 Day Free Trial, the service will continue at £9.95 per month, giving them unlimited online access to their credit information and weekly alerts on any changes to their credit file. It also includes an online dispute facility to help them correct any errors on their credit file simply and quickly.
*Equifax Financial Stability for 2014 Survey – February 2014 – 1,158 respondents
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Equifax is a global leader in consumer, commercial and workforce information solutions that provide businesses of all sizes and consumers with insight and information they can trust. Equifax organizes and assimilates data on more than 600 million consumers and 81 million businesses worldwide. The company’s significant investments in differentiated data, its expertise in advanced analytics to explore and develop new multi-source data solutions, and its leading-edge proprietary technology enable it to create and deliver unparalleled customized insights that enrich both the performance of businesses and the lives of consumers.
Headquartered in Atlanta, Equifax operates or has investments in 19 countries and is a member of Standard & Poor's (S&P) 500® Index. Its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. In 2013, Equifax was named a Bloomberg BusinessWeek Top 50 company, was #3 in Fortune's Most Admired list in its category, and was named to InfoWeek 500 as well as the FinTech 100. For more information, please visit www.equifax.com.
Equifax Limited is authorised and regulated by the Financial Conduct Authority.