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Excluding pension contributions, UK adults are saving on average just 5.9% of their gross income each month, while 37% of people claim they're unable to save anything at all, according to Sainsbury's Finance. Younger and older people find it the hardest to save with 43% of those aged under 24 and 41% of those over 65 saving nothing.
The new research shows that those in work are saving just 6.6% of their income compared to 4.8% for those not in work. The percentage of those not saving anything at all in these two groups is 33% and 41% respectively.
The findings also indicate that only around 6% of people are saving more than a year ago, with 16% saving less. However, some people are saving considerably less. Indeed, an estimated 3.74 million people (8% of the adult population) are saving over 20% less than they were 12 months ago, with just over half of these people (2 million) saving over 50% less. Only 1% of people are saving over 20% more than they were a year ago.
For those people who've reduced the amount they're saving in the past year, the main reason cited was that the cost of living has increased (47%). This was followed by a change in personal circumstances (16%); and personal debts (14%).
On a regional basis, people in Yorkshire and Humberside are saving the least, putting aside on average 4.7% of their monthly income into savings, while people in the East Midlands and Anglia are saving the most at 6.7%.
Neil Cameron, Savings Manager, Sainsbury's Finance, makes the point that at the very least, it's advisable to have money set aside for emergencies. This may vary from saving 10% or more of your salary to having at least 3 months' salary readily available.
06 March 2008 © Moneyextra.com
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