How to Close Your Savings Gap

What is the Savings Gap?

Put plainly it’s the shortfall between the level of saving people expect to attain and reality.

At True Potential, we’ve led the way in researching the Saving’s Gap with over 50,000 people surveyed on the subject since 2013. Our research has found that only a minority of savers will have enough funds to reach their financial goal.

One of the clearest examples of this is retirement, where people say that they need on average £23,000 a year to live comfortably. However people in the UK are only on course to receive an income of £6,000 per year. With such a significant shortfall, it’s clear that the UK needs to fundamentally change the way it approaches its finances.

This has never been more apparent than during recent months. Despite many of the economic and social hardships inflicted on us by COVID-19, it’s shone a bright light on the saving and spending habits of people in the UK and how they plan for their financial future.

With that in mind, we’ve put together three simple ways you can top up your investments and close your Savings Gap.

Set Up a Direct Debit

One of the simplest ways to close your Savings Gap is setting up a Direct Debit.

Adding a Direct Debit to your investment means you’re taking the effort out of securing your financial future. Think of it as investing on autopilot, you’ll automatically be adding a consistent contribution to your investment every month, without lifting a finger. In the same way you pay your mortgage or bills, you can begin to consider it an essential outgoing and factor it into your disposable income for the month.

Once your Direct Debit is set up, you can sit back in the knowledge that your regular monthly investment is taken care of.

Adding a direct debit to your True Potential account is simple.

1. Log in to your True Potential online account as usual
2. Click through to your investments
3. Scroll down and select the policy you wish to add a direct debit to
4. On the policy page, click ‘Edit monthly investment’
5. Enter your monthly amount and bank details, and we’ll take care of the rest

Make small impulseSave® top ups

The second simple way to top up your investment and close your Savings Gap is to impulseSave®.

Our world first technology enables you to top up your investments from just £1. With 24/7 access to your account through our free mobile app, you can top up anytime and anywhere. No complicated forms, phone calls or face to face meetings, just a couple of taps on your mobile. In 2019 alone, people like you impulseSaved £56 million in to their investments.

If you have some extra cash left over at the end of the month, no matter how small the amount, why not add it to your investment and help secure your financial future?

To make an impulseSave® follow these quick steps

1. Log in to your True Potential account online or by app
2. Select the investment you wish to impulseSave® in to
3. Select the ‘Top up Investment’ button
4. Choose the amount you wish to impulseSave®
5. We’ll apply the payment amount and let you know when the money is invested

Set a Goal for Your Money

At True Potential, we believe that setting an accurate goal is the most important step in determining your financial future.

Goals create a focal point to help keep you on track over the long-term, they also offer you an accurate picture of your personal Savings Gap. Whatever your financial goal, our award-winning technology enables you to track your progress 24/7, giving you the power to adjust your investment behaviour where necessary. With visibility of your long-term financial position, you can make the changes you need to stay on track and do more with your money.

Setting a goal is easy

1. Log in to your True Potential account online or by app
2. Select the Investment you wish to set a goal for.
3. Select ‘Create Goal’ and answer the questions

Following these three simple steps will go a long way to help you achieve your financial goals and close your personal Savings Gap.

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With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. Past performance is not a guide to future performance. Tax rules can change at any time. This blog is not personal financial advice.