Karl TaylorOn 1st February Professor Karl Taylor presented the paper ‘Saving Behaviour, Expectations and Financial Hardship’ at the University of Essex.


This seminar will consider the determinants of saving on a regular monthly basis and private pension contributions over a period of nearly two decades. Moreover, we explore the relationship between both types of saving and expectations as measured by being pessimistic about future finances. We also focus on the influence of the prevailing macroeconomic environment and household which are in low pay. We exploit UK panel data covering 1996 to 2014 drawn from the British Household Panel Survey and Understanding Society. Hence, importantly our period of analysis covers the recent financial crisis. We then explore the effects of saving on a regular basis for future financial hardship in order to shed light on whether regular savings act as safety net for future financial difficulties. The results suggest that being pessimistic about future finances is positively associated with saving on a regular basis, which accords with precautionary saving motives. Our findings also indicate that saving on a regular basis is inversely associated with future financial hardship.


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