Much of the UK fails to save money
May 27, 2008
A recent report has shown how many people in the UK fail to save any money – in fact, the figures suggest that an alarming 25% of consumers in the UK fail to save any money at all, whilst many others do put some money aside but then spend it all on holidays. The study was carried out by the Post Office, and also showed that whilst a third of consumers did try and save money they did not do this on a regular monthly basis. Many experts feel that failure to put any money aside in savings could pose problems for consumers.
In recent weeks consumers in the UK have been urged by financial advisers to try and ensure that they have at least three months’ worth of salary put aside for emergencies. This is particularly important for those that are self employed and therefore may need emergency funds to subsidize wages if they receive less income than usual for a month or two. A fifth of those that failed to save any money whatsoever stated that they had other things that they wanted to spend their money on other than savings. Over a quarter of non-savers stated that they could not afford to put money aside because they had other financial commitments and too many debts to worry about.
One financial expert stated: “To some extent the economy has grown a lot and that’s been dependent on us not saving. In absolute terms, as we get richer we save more but our expectations rise, so in order to have pensions of 21st Century levels we probably need to be saving more than 2% of our disposable incomes.”
The survey also showed that many of those that were putting money aside were only doing this for a specific purpose, usually to spend on a holiday. Around half of those aged between 55 and 64, however, stated that the reason that they were putting money aside into savings was for their future and to aid their retirement fund.
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