Fewer people are putting money away despite improvements to the economy
T he gap between the fortunes of savers and non-savers continues to widen, and research supports these findings. ‘Habitual savers’ continue to put away more for a rainy day, but the total number of people saving has fallen, and, despite improvements to the economy, one in five people in the UK have no savings at all.
1 The number of people in the UK with no savings at all has risen year-on-year from eight million to over nine million, or one in five of the UK adult population.
2 For those who are managing to save, the average amount that people have in savings was boosted by £175 in 2013 in comparison to the previous year, from £10,033 to £10,208.
3 The total number of people who are managing to save something has dropped from 14.8 million to 14.4 million (31% and 30% of the adult population respectively), and more than half (54%) of those surveyed said they were saving less than they did two years ago.
4 Many people are still only thinking in the short term – almost half (48%) said they prefer to spend their money rather than save and invest, and 64% said they know they are not saving sufficiently for their long-term needs.