Scary financial habits to avoid this World Savings Day

As the nation celebrates World Savings Day this Halloween, Aviva is encouraging consumers to overcome the financial fears that affect their everyday spending.

From pensions that you have forgotten about, to terrifyingly unexpected expenses and budget drainers, Aviva is highlighting the spooky money habits that could be challenging people’s financial futures and offering some simple ways to break the curse.

Frightening financial habits to avoid:

1. Don’t be haunted by forgotten pensions

You can easily forget about your old pensions. Track them down to ensure any retirement savings aren’t forgotten.

According to research conducted by the PPI for the ABI and Pensions UK^[1], there are now 3.3 million lost pension pots in the UK, worth a combined £31.1 billion. Aviva’s ‘Find and Combine’ service has already successfully reunited people with lost pensions worth over half a billion pounds (£565 million).

2. The shock of unexpected expenses that drain wallets

Whether it’s recurring TV streaming subscriptions; newspaper auto-renewals; gym memberships that are never used; or just the daily coffee that can all add up to hundreds of pounds a year – it’s all expenses that can quietly drain wallets unexpectedly and could be put to better use elsewhere.

Try to conduct a monthly expense audit and cancel subscriptions and unused services.

3. Beware the Impulse Buys

Impulse purchases can mount up fast – especially when online shopping. So, whether it’s Halloween costumes for pets, or Christmas beauty advent calendars - beware the bewitched buys as they can all add up.

Use a 24-hour rule before buying non-essentials and set spending limits for gifts, treats or hobbies, to help stay in control. This means waiting a day between spotting an item and clicking “buy”. If you still want it 24-hours later, go for it!  Also, use comparison tools to compare prices.

4. The Curse of No Budget

Without a budget, you could be haunted by making financial mistakes. Create a simple monthly plan to guide spending and savings.

Listing income and essential expenses can help. And allocating a certain amount to savings and discretionary spending can prevent unexpected surprises. Remember to review and adjust your monthly budget to stay on track.

 5. The Spell of "I’ll Start Saving Later"

It’s easy to fall under the spell of “I’ll save when things settle down” - but the truth is, there’s rarely a right time.

If you need to build a savings buffer you could start by setting up automatic transfers to a savings account or cash ISA. And, if you have spare pounds, you could save by investing them into your pension. It’s a simple way to build savings without having to think about it.  Even small amounts, saved regularly, can grow significantly over time.

To remain motivated, set some goals - like a holiday fund, a new car, or an emergency buffer. Seeing progress toward something ‘real’ can make saving feel more rewarding.

Finally, explore sites like Aviva Save online service, which gives you easy access to a range of fixed rate, easy access and notice accounts through a variety of banks and building societies, via a name you already know.

6. Scary savings that offer no interest

According to the latest Bank of England figures (Money & Credit report) a record £300bn of household savings are sitting in accounts paying no interest. Hundreds of millions of pounds of potential interest could be lost by holding money in these accounts. Shopping around for a better savings rate has never been easier.

Alistair McQueen, Head of Savings and Retirement, Aviva, said: "Saving doesn’t need to be scary. The key is to start small, stay consistent, and make it a routine. Whether it’s saving by investing into a pension for retirement, building a buffer of cash for a rainy day, or a dream holiday, every pound saved is a step toward financial peace of mind.

“Think of saving as a habit. Making your savings routine takes the pressure off and helps you build momentum.  You can grow your savings without even noticing. The trick is just to start saving, however little."

This World Savings Day, Aviva urges everyone to take a moment to reflect on their financial habits and make one small change that could lead to a less frightening financial future.

Ends

References:

^1. _{Brits missing £31.1bn in unclaimed pension pots | Pensions UK – Research conducted by the PPI for the ABI and Pensions UK led Pension Attention campaign [↑]}

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