Consumers urged to save 12% of income

UK consumers should be looking to store away more than ten per cent of their income for a rainy day, it has been suggested.

According to Alison Morris, savings expert at Scottish Widow, 12 per cent per month is the optimum amount to be putting away into a savings account.

She urged consumers to start off by saving a small amount and gradually build this up over time to improve their financial security.

Putting money away in the bank, and enjoying the benefits of savings interest rates, can mean there is "one less thing to worry about", Ms Morris noted.

She added: "While this may feel like a stretch to many people in the current environment, if the nation doesn't plan for their financial futures now there is the danger that they won't have enough to ensure a comfortable retirement."

Last week, ING Direct reported that savings levels dropped by eight per cent during the first quarter of 2010, as households attempted to pay off debts accumulated over the Christmas period.

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2010-05-05 13:56:13 © Moneyextra.com