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Press release

SECURITY: THE NEW LUXURY

22 July 2005

A big win means security and generosity to the Brits, not jewels and fast cars

Fantasies of buying mansions, sports cars and designer clothes with a big win are being replaced with a more modest approach, according to the latest research from National Savings and Investments (NS&I). The government-backed savings and investments provider found most Brits would rather bank a big win and keep a low profile than just spend, spend, spend.

Britain’s top 5 ways to spend a windfall

When asked what we would spend a £1 million win on, more than one in ten (12%) would put it all in secure savings and investments compared to just 1% who would blow it all on luxury goods like flash cars or expensive jewellery.

Most people (41%) would spend the whole win on sensible things such as a house or new car but a quarter (26%) would choose to share their good luck with family or close friends. A further 6% would use the windfall to test their entrepreneurial skills, investing it all in a business, property or antiques.

Keeping mum

This British reserve is also reflected in who we would tell if we won £1 million, with most opting for a modest approach. The majority of Brits would tell their family and close friends (59%) if they came into money, however, one in four (26%) would only tell their partner and a further 7% wouldn’t tell anyone at all (see notes to editors for a full list).

Men are more secretive than women, with three times as many men (10%) than women (3%) preferring to keep silent about their good fortune. 

Low key

In keeping with this modest approach most Brits would celebrate a windfall with family and close friends (58%) – and only 9% would throw a huge party or buy themselves something extravagant.

Almost as many would use the opportunity to launch a business idea (8%) and more than one in ten (13%) would choose to forego any celebrations at all in favour of putting their £1 million win into secure savings and investments.

Other findings

• Perhaps inspired by recent events such as Live8 – most Brits (72%) would donate some money to charity. (40% would give a few thousand pounds and 32% would give a significant amount.) 
• Brits see themselves as down-to-earth millionaires such as Jules and Jamie Oliver (29%) and JK Rowling (25%) rather than the show-stopping Beckhams (5%). 
• A third would manage their £1 million like successful entrepreneur Richard Branson (28%) and only 5% of Brits would hoard like Mr Burns from the Simpsons.

Thinking of the future

Sally Swait, Premium Bonds manager at National Savings and Investments, comments: “This research shows British reserve is still strong. Brits may fantasise about five-star lifestyles, but perhaps due to the increased focus on debt and pensions, it seems a secure future is now seen as a far greater luxury.

“This shift to security and modesty has resulted in a renaissance in risk-free savings such as Premium Bonds, which combine 100% security with the sense of fun associated with winning tax-free prizes. Currently 23 million people have £27 billion invested in Premium Bonds and all of the 136 Premium Bond millionaires have shown this British reserve, choosing not to go public with their win. “

-Ends-

Notes to Editors:

The National Savings and Investments survey was conducted by TNS via OnLineBus, between 01 – 04 July 2005. The sample size was 1,467 GB adults aged 16-64.

Premium Bonds

• Premium Bonds were launched in 1956 - since then, over 124 million prizes worth over £7.9 billion have been won.
• On 17 June 2005, NS&I announced that from August 2005 there would be two monthly £1million jackpot prizes.
• Currently 23 million people (over 39% of the population) hold 27 billion Premium Bonds
• Premium Bonds can be bought for children under the age of 16 by their parents, grandparents or guardians.
• There is currently over £23 million in unclaimed prizes. There is no time limit on claiming prizes.  Premium Bond investors can check to see if they have won by logging on to www.nsandi.com and using the Premium Bond prize checker.
• The minimum purchase is £100 (old holdings of under £100 are still valid).  Bonds must be purchased in multiples of £10.
• 136 people have become Premium Bond millionaires since 1994.
• The winners of the monthly jackpot are told in person by Agent Millions – M1 and M2.

National Savings and Investments

National Savings and Investments (NS&I) is one of the UK’s largest savings and investments providers with around 26 million customers and £68 billion invested.  NS&I provides a wide range of savings and investments, including Premium Bonds, Savings Certificates, Income Bonds, Children’s Bonus Bonds, Guaranteed Equity Bonds and the Easy Access Savings Account.  NS&I is able to offer a 100% capital guarantee on all the products it offers because it is backed by HM Treasury.  NS&I, formed in 1861, is a government department and an executive agency of the Chancellor of the Exchequer.

If you won £1 million, which one of the following would you be most likely to tell?

Response	Total	Men	Women
Family and close friends	59%	55%	63%
My spouse/ partner only	26%	28%	25%
No one	7%	10%	3%
Everyone	6%	5%	7%
My financial adviser	2%	2%	2%

If you were to celebrate winning £1 million, which one of the following would you most likely do?

Response	Total	Men	Women
A low-key celebration with family and/or close friends	58%	55%	60%
I wouldn’t spend any on celebrating – it would all go into my savings and investments	13%	16%	10%
A massive party with everyone I know or buy myself something extravagant	9%	8%	10%
I would launch my business idea – I’ve been waiting for the perfect moment	8%	9%	6%
Nothing	8%	9%	8%
I’d give it to charity or my family	4%	3%	6%

If you were to spend it all, which one of the following would best describe what you would do?

Response	Total	Men	Women
Buy sensible things like a new car, a house, maybe overseas property and go on a nice holiday	41%	38%	45%
Keep the lion’s share myself but split the rest among my family and/or close friends	26%	21%	31%
I wouldn’t spend it all	13%	13%	14%
Put it in secure savings and investments	12%	17%	6%
Invest in a business, property, wine, vintage cars, art, antiques	6%	9%	4%
Buy an expensive, fast car or a house or jewels	1%	2%	*

NOTE: * means less than one percent

Celebrity role models – which millionaire would you be most similar to, in terms of managing your money?

	Jules and Jamie Oliver	Richard Branson	JK Rowling	Bob Geldof	The Beckhams	Mr Burns (The Simpsons)
National	29%	28%	25%	8%	5%	5%

Media team
NS&I has a number of spokespeople available for interviews and our experienced radio team is available via our ISDN line: 020 7602 4522.

The numbers below are for media use only. Customers wishing to contact NS&I can find details here.

Gill Stephens		020 7348 9449
		gill.stephens@nsandi.com
Iman Asante		020 7348 9301
		iman.asante@nsandi.com
Angela Mason		020 7348 9433
		angela.mason@nsandi.com
ISDN for interviews		020 7602 4522
Out of hours		All numbers above diverted to staffed mobile phones

 

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