Britons saving less than last year

Posted on December 29th, 2010 | Categories - Savings

Savings have dropped as people cope with lower incomes.

British savings have fallen in the last quarter during a “challenging” financial year.

The level of cash set aside by British savers has dropped again marking the lowest level for five years, according to research from National Savings & Trust.

The survey found that the average Briton saves just 6.69% of their monthly income, which equates to £82.92 – at the same time last year people were saving almost £6 more. However, this could be the result of savers setting themselves more realistic targets in light of a decline in income and the government’s implementation of cost-cutting austerity measures. The average monthly take-home income of a British worker has dropped from £1,252 in the summer 2010 to £1,239.10 this autumn.

Tim Mack, NS&I’s Savings Spokesman, said: “This quarter’s results reflect what has been a challenging year for Britain’s savers. But more people should be looking to make savings more of a priority. With Christmas on our doorstep, now is the time to use these results as a wake-up call”.

He added: “There is less than a month until the start of 2011, but this shouldn’t cause people to panic. There is still enough time for people to review their finances and set up a plan to make sure they don’t suffer a New Year financial hangover”.

The survey also found that half of the British population saved every month in the three months leading up to November, which signalled a drop from the last quarter. However, although the number of savers has fallen this is still the highest autumn level for the last three years.