According to the latest Savings and Protection survey conducted by the Association of British Insurers more people are paying off their non-mortgage debt at a faster rate in Q3 of 2009 than the previous quarter. They suggest a third of people surveyed are paying off debts such as credit cards and repayments compared to 25% in the last quarter.

Is this a sign that we are starting to feel more confident about spending and slowly move ourselves out of the recession? Well, the survey indicated that the majority of respondents (52%) felt that the economy will improve over the next year. This is certainly promising, especially when compared to the fact that only 12% of respondents felt positively about the economy this time last year.

The survey also noted another interesting point, that the majority of people today feel that property is their best investment. One can imagine that if the question was asked a year ago the answer may have been very different.

All in all these are good signs for the economic sentiment and are clearly reflected in retail sales. According to the National Office of Statistics sales volume between July and September rose by almost 1% compared to the previous three months.

Despite, the more positive outlook the state of many peoples retirement plans can be considered worrying. For example, the survey found that 40% of people are either savings too little or nothing at all. As Britain moves forward it is clear that individuals are going to have to take greater ownership over their retirement. However, it is clear that many people are not taking this issue as seriously as perhaps they should.