UK: One In Four Don’t Save

In the wake of years of economic growth, around a quarter of the population of the UK don’t save any money on a regular basis, according to a report released this morning.

The report, commissioned by The Post Office, reflected an astonishing trend towards spending rather than saving money, with the majority of those who do save choosing to splash out on a holiday with their money.

The same study revealed that one third of the population did put money aside on a regular basis, although the proportion of monthly savers was significantly less.

Around twenty-five percent of the non-savers in the study cited debt as the main factor in their aversion to saving, whilst one fifth simply adopted a spending orientated outlook on their earnings.

While many analysts have found the findings alarming, some consolation was found in the proportion of 55 to 64 year olds saving for retirement, which was recorded at around about 50%, which many have put down to the well documented deficit in corporate pension funds.

With stock markets thrown into volatility over recent months, investment funds have faltered and struggled to break even, leaving a substantial deficit for those that have invested in company pension funds over the last few decades.

For this reason, many middle-aged to older savers are making a conscious effort to store money for their autumn years – news which many analysts are finding reassuring in the current economic climate.

The recent spell of low interest rates and easy credit have done nothing to encourage saving, which is now considered to be at its lowest rate since the early 1950s.

However, with rising interest rates and credit looking to come into short supply with the situation in the US, consumers in the UK will need to change their savings habits in order to weather the pending storm.

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