New research from data analytics firm Boobook suggests that COVID-19 has led to a significant number of people in the UK and US saving more than they had previously during lockdown and the vast majority of those savers are taking stock and reviewing their long terms savings.
Key findings of the study include:
- Two thirds of people in the UK and US plan to review their savings and investments in the next six months
- Three in five in both the UK and US are planning on reviewing their financial planning (setting goals for what they want to achieve for their money) in the next six months
- A third of people in the UK and half in the US are planning on reviewing their retirement plan in the next six months
- More than a third of people in the US and two in five in the UK plan to change insurance policies in the next six months
- 1 in 5 people in the US and almost a third of those in the UK are saving more during lockdown than they had previously
- 43% of people in the UK and 53% of those in the US are planning on keeping their savings for long term investments and retirement
With almost half of consumers in the UK and US having seen a pay cut due to situations arising from the pandemic, as a society we have been reminded about the unpredictable nature of the world around us. So much can change in such a short time. This is leading many people to re-evaluate their attitudes toward savings, spending and investments over the course of the next six months. And while the pandemic has had a significant and negative impact across many sectors, our research shows it could potentially spell a boom for the finance industry.
The Boobook COVID-19 Study found that two-thirds of people in the UK and US are either saving more or at least the same amount as prior to the pandemic. For people that have seen a pay cut over the last few months this figure stands at 43% for UK and 48% for US, showing that this increase in savings is not just on the part of those that have yet to be impacted by the virus.
But, what is planned for those additional savings? Only a quarter of savers are planning on spending that saved money in the next six months. 19% of people in the UK and 24% in the US are planning on putting it in some kind of financial investment plan, and 40% in the UK and 29% in the US are planning on putting some, or all of it, into short term savings.
Of the study Nicole Huyghe, founder and CEO at Boobook said “While many industries have been badly hit by COVID-19, we may be entering a boom period for the financial industry. However, it could also potentially signal a lot of churn within the sector, so companies with the best insight into their customers have a huge opportunity if they play it right.”