People are becoming more proactive in their approach to putting money away for the future, according to a new RL360° Quantum study. RL360° looked at the behaviour of its Quantum savers over the last 20 years in order to get a picture of the changing trends. After analysing data from in excess of 33,000 of its policies, it discovered that clients are now saving considerably more than those who bought policies in the 1990s. They are also saving for longer and starting at an earlier age.
The study showed that clients are saving 54% more than they were and they are saving for 40% longer. Also, the average age at which people get policies has dropped slightly from 39.59 to 38.63 years.
In addition, it was found that women are now more likely to take out Quantum policies. The proportion of female policyholders has gone up from 16.4% to 27.4%. In terms of payments, more than 7 in 10 clients now make these by credit card, while the proportion of people paying monthly has climbed from 76.4% to 95.2%.
Many policyholders are located abroad. Of the UK expats who bought Quantum policies in the 1990s, 69% are still living overseas. They are based in 114 countries, and the most popular of these is the United Arab Emirates. Meanwhile, an increasing number of policies are being purchased by people based in the Far East.
Why people are saving more
Responding to the findings, RL360° Marketing Services and Communications Manager Nigel Danzelman, who headed the research, suggested that a combination of factors could be causing people to save more. He highlighted issues such as a lack of trust in state pensions, the raising of state pension ages and a general lowering of state benefits across the world. He went on to note that people are also living longer and are therefore more aware of the importance of being savvy when it comes to planning their financial futures.
Mr Danzelman pointed out that Quantum is highly popular among expats, who find having a flexible, medium to long-term, multi-currency saving plan to be a “really attractive proposition”.
Operating from its base on the Isle of Man, RL360° provides a range of saving and investment solutions. For example, as well as Quantum, it offers policies including Oracle, Paragon and PIMS. You can get full details on these products, and the rest of the company’s policies, by visiting its website.