9th March 2015
UK savers managed to squirrel away more money in 2014 than at any other time in the past 10 years claims new research from National Savings and Investments (NS&I).
The group’s Quarterly Savings Survey found that monthly savings were 9.25% higher in 2014 than 2013, rising to £113.77 per month, equivalent to 8.52% of average take home pay.
This marks the highest share of monthly pay to be saved since NS&I began its survey in 2004. It reached its lowest point at 5.82% in spring 2005.
What are people saving for?
The majority, at 74%, of those who put money aside each month were doing so without a goal in mind and saving simply because they believed it was the right thing to do. However almost half, at 49%, of those aged 25-34 and 41% of those aged 16-24 were saving to cover housing costs.
Of the 26% who were saving with a goal in mind, 42% were looking forward to a holiday or celebrating a special occasion while 35% said they were saving to cover housing costs which includes saving for a deposit. Julian Hynd, retail director at NS&I, said: “The latest results are encouraging, but we hope more people will be putting aside money into their rainy day savings, so they feel ready to deal with an emergency should one arise.”
Savings safety net
But despite the increased levels of savings, almost a third of savers questioned, at 29% did not believe they had enough money set aside in case of an emergency. Savers aged 65 and over said they were best prepared for an emergency with 73% feeling comfortable with their savings, while only 48% of those aged 35-44 felt prepared.
The survey also showed that 50% of savers with children under 15 think that they had the savings in place to cope with an emergency. In addition, 32% of those approaching retirement age (55 – 64) said they had less than £1,000 in savings with one in 10 suggesting they had none.
Average monthly savings rate 2005-2014
|Winter||Average saved per head||Savings as a percentage of income|