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Friday, 15 February 2019
MANY householders are struggling to save — with more than one in four failing to stash any cash in the past 12 months.
The latest Lloyds Bank quarterly savings review shows that many Brits are still struggling to save.
The majority of reasons given for not saving reflect a common feeling of pressure on personal finances, leaving people unable to put money aside.
Of those that didn’t save any money in the last year, three in five (60 per cent) said they simply didn’t have enough money to save, and one in three (35 per cent) stated the rising cost in living prevented them putting money away. A similar proportion (28 per cent) felt they had to manage their outstanding debt first.
When looking at the whole country, including those who do save, just 38 per cent are satisfied with their current level of savings.
Amongst savers and potential savers, just over one in five (22 per cent) expect to be able to save more over the next 12 months, while half expect the amount they save to remain the same over the next 12 months.
It isn’t all doom and gloom, however. There is evidence that the UK is becoming more savings savvy, with just one in four (26 per cent) saying they would rather spend than save — an improvement of four percentage points compared to June 2018 (30 per cent).
Almost three-quarters (71 per cent) care about the amount of savings they have and 81 per cent believe it is important to them to save for the future.
Mark Rawcliffe, Lloyds Bank’s head of variable and wealth savings products, said: “The desire to save is there and its importance has not been lost on the people of the UK.
“However, it’s true to say that some are feeling so squeezed by their own living costs that they are unable to put money aside.
“For these people, innovative ways to save may be the answer. Tools like our own ‘Save the Change’ can help to round up the pennies and put them to one side, helping to build a savings buffer over time for those that weren’t able to save last year.” Meanwhile, finance provider FairMoney has revealed the top six things people in the South East borrow money for. The figures for 2018 show that:
• 26 per cent use loans for cars/vehicles
• 14 per cent use loans for home repairs and improvement
• 12 per cent use loans for consolidation purposes
• Eight per cent use loans for emergency cash
• Seven per cent use loans for house repayments
• Four per cent use loans for life event costs such as weddings and funerals
The figures also reveal that the average loan size in the South East is £2987.10, with seven per cent paying their rent or mortgage on credit.
A FairMoney spokesman said: “Borrowing is now embedded within millennial culture, with 18- to 34-year-olds borrowing more money than any other generation and the average loan size in the South East standing at £2,987.10 whilst the average yearly income is £23,810.90.
“Over recent years, there has been a significant rise in the amount that people are borrowing. The economic climate is now incredibly pressured with Brexit looming and a haze of uncertainty surrounding the outcome and how this may squeeze people further.”
FairMoney founder and executive chairman, Dr Roger Gewolb, added: “Consumers deserve to have access to fairer finance to relieve the pressure of the financial squeeze.
“As shown in our National Borrowing Index, funds are needed for an array of life events, some of which you cannot financially plan ahead for.
“The focus should not necessarily be on what we’re borrowing for, but more importantly who we’re borrowing from.”
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