Generic advice ‘crucial’ to government financial education scheme

Coordinating generic financial advice alongside the introduction of personal accounts could be a "key" method in which to improve the country’s economic awareness, a report suggests.

According to the Resolution Foundation, the Thoresen Review should also look to make advice on unSecured Loans and other forms of personal finance as applicable to real life situations as possible.

Chief executive of the foundation Sue Regan said: "Generic financial advice will be the jewel in the crown of the government’s financial capability strategy."

Ms Regan added that if some £50 million a year is set aside for a generic financial service, then consumers could benefit by up to £60,000 over the course of their lifetime.

The Resolution Foundation added the creation of such a service would not only improve public awareness on areas such as pensions and savings but could also "provide long-term benefits to the financial services industry".

Earlier this week, a study by Stroud and Swindon indicated that the majority of Britons lack "everyday knowledge" on personal finance topics such as stamp duty and savings.

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