Credit Action News Round-up (6 December 2011)

Money is biggest cause of arguments for middle aged couples: New research conducted by Prudential has found that money is the biggest source of arguments for 27% of UK couples over the age of 40. This means that financial matters are leading cause of arguments for couples over 40, ahead of household chores (26%) and socialising (9%). The study found that nearly one in five (17%) of co-habiting couples over 40 do not feel comfortable discussing their finances with their partners.

The study also surveyed 2,000 people about retirement planning, finding that 20% of them have never had a conversation with their partner about a retirement income. Of those that have, 34% of them have not discussed it in detail, giving the subject half an hour or less of conversation. More than half (56%) of the surveyed couples admitted to having no idea of the amount of money they would need to lead a comfortable retirement.

Women lead growth in household wealth, according to new study: A comprehensive study from the Institute for Fiscal Studies (IFS) has shown that women have been the main drivers behind the rise in living standards for low and middle income families in the UK over the last 40 years. Between 1968 and the financial year 2008-2009, working women contributed 25% of all growth in household wealth, compared with 8% from men. Tax credits made up a further 17% of the growth, despite their introduction late in the 40 year period covered by the report. If growth in tax credits and benefits is discounted, women accounted for 78% of all household income growth, whilst income from men’s work has barely changed since 1968.

The IFS report showed a major shift in the income of low- to middle- income (LMI) households over the course of a generation, compared with richer households where sources of income have remained largely static.

Commenting on this finding, the IFS says: "Having been dominated by the earnings of a (generally male) main earner, LMI households today receive large portions of their income from female employment and from the benefit and tax credit system. This greater diversity of income sources may reduce the risk of negative income shocks. But these changes mean that LMI households are now more dependent on external support, whether directly (through the generosity of the benefit and tax credit system) or indirectly (through the availability of services, such as childcare, that make dual earning, or lone parent working possible)."

UK rapidly embraces new technological shopping techniques: A survey of global shopping habits by KPMG has suggested that UK shopping habits have been transformed by technology, with 77% of British shoppers buying online, compared with 65% globally. The survey looked at 9,600 consumers aged between 16 and 65, across 31 counties. It showed that the majority of customers (both in the UK and globally) looked to social networking sites such as Facebook and Twitter and online review sites when purchasing goods or services.

Of the UK consumers, 74% said they were more likely to buy flights and holidays online and 60% use the internet for grocery shopping. This compares with US consumers, of which only 21% said they would buy groceries online. With mobile banking, however, UK consumers are more reluctant, with only 27% having used some form of mobile banking in the past six months. This compares with over 52% globally, which is a huge jump from the 20% recorded in 2008.

One benefit of online shopping is that a large number of retailers have signed up to the Just Giving scheme, which allows their consumers to donate a percentage of their online expenditure to a charity of their choice, at no extra cost. Sign up through Credit Action’s Just Giving page to donate to Credit Action whilst you shop online!  http://www.everyclick.com/creditaction

Recent Posts

Archives