The recession is prompting Brits to seriously rethink the state of their finances and their long-term financial futures, according to a report from Friends Provident.

The firm found that there is now a new breed of realistic thinkers are emerging from the downturn, people who have been prompted to get a grip and give serious thought to their savings and long-term financial options. Friends Provident says many people now recognise that their lifestyles cannot be maintained permanently without greater financial security.

It says this has led to one fifth of UK adults feeling a greater need to look ahead and plan for the future as a result of the recession, with a third starting to save more since the beginning of the recession.

This new sentiment may see more people considering savings mortgages – loans that incorporate savings pots to save money and reduce debts. By saving more and handling debt more carefully with a loan that encourages prudent spending, many people will find themselves more ‘recession-proof’ next time round – if another downturn comes along in the future they will have the financial means to deal with it.

Simon Clamp, managing director UK at Friends Provident, says: “Despite the negative impact of the recession experienced by many people across the UK, it is encouraging that a significant number have taken it as an opportunity to become more financially savvy. Increasing financial awareness amongst consumers can only be a good thing and this is demonstrated by the numbers who are reducing their debts and becoming more focused on their futures and saving for the long-term.

“A long-term benefit of the recession may be a generation of younger people who have learnt important financial lessons.”

SOURCE: Friends Provident, 08/08/09

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