Consumers `failing to save and risking debt`

Confidence among British consumers in savings is continuing to fall, meaning that many people may be risking debt.

This is according to research conducted by YouGov on behalf of the Association of British Insurers (ABI), which suggests that during the fourth quarter of 2008, 73 per cent of consumers felt that the benefits of saving fell last year.

Dr Rebecca Driver, ABI director of research and chief economist, said: "The current economic climate vividly highlights the dangers of too much debt - the country needs to develop a healthier approach to saving."

Yet these figures indicate that consumers are becoming increasingly sceptical about the benefits of putting money aside, she added.

Dr Driver went on to say that the government should increase the limits on individual savings accounts and bring forward automatic enrolment into existing workplace pension schemes.

Figures produced recently by the Life Trust suggested that 12 per cent of people now expect to postpone their retirement for as long as five years due to a lack of funds.