29th January 2016
Britons are some of the best savers in Europe, according to a survey of savings across the continent.
Research by ING that surveyed 15,000 people across 15 countries reveals one in five people in Europe grew their savings over the past 12 months, with 30% of those in the UK and Luxembourg growing their savings pot over this time.
However, the source of the money is not because people have more money but because they are making the decision to save more despite not earning more.
Nearly one in 10 (9%) said they are cutting back on clothing and grooming, 12% are cutting back on holidays and 15% are reducing the amount they spend on leisure and entertainment in order to boost their funds.
However, net spending on utilities, food and health saw significant increases of 33%, 17% and 12% respectively.
Just one in four are comfortable with the amount they have available in savings and half of people in Europe have enough savings to cover three to six months of take-home pay – which is the recommended level of buffer.
Unfortunately, 45% do not have enough to cope with an emergency such as a home heating breakdown.
The countries most comfortable with their savings are those where people have increased the amount they save.
Ian Bright, senior economist at ING, said: ‘A number of people aren’t necessarily where they want to be financially, but the good thing is that many are taking a deliberate decision to increase their savings stockpile whether they have the extra income or not.
‘Despite an environment of low interest rates, it seems some people are more interested in setting money aside for a rainy day than necessarily earnings from it.’