Standard Life has found that the majority of UK consumers can spot a good deal when it comes to a holiday, but are likely to miss out on a good deal when it comes to their finances.

In a UK wide consumer poll and prize draw in which 8,500 people took part Standard Life found that almost seven out of ten (70%) people would choose a holiday of a lifetime worth £5,000 even if they had to wait five years, rather than settle on a luxury short break this year worth £640*. £5,000 is how much a pension could be worth if £640 was invested into a pension plan each year for the next five years**.

The poll and prize draw, run by long term savings and investment provider Standard Life, highlighted that the UK public know how to spot a good deal when offered one and are willing to wait five years to make their holiday dreams come true. But this savvy forward looking culture is yet to filter through into finances, with almost half (45%) of Brits planning just one to 12 months ahead and a further one in six (17%) failing to make any financial plans at all, according to Standard Life’s research***.

Standard Life’s John Lawson said: “Consumers are keen to spot a good deal which is why voucher codes and group buying websites have become so popular. But many only apply this bargain hunt culture when buying goods, not when it comes to their financial planning. Consumers who take a short term view to their personal finances are likely to miss out on long term tax efficient products that offer far greater benefits than your standard savings account. For example, if you’re a lower rate tax payer and pay into a pension, the government gives you 20% extra on top straight
away in tax relief. That means a pension contribution of £100 a month is instantly worth £125 a month. People’s great bargain hunting skills are being wasted if they are not picking out these great investment deals.”

Via EPR Network
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