£92 billion stashed away in secret savings

Over 10 million (28 per cent) UK savers are keeping financial matters a secret from loved ones by hiding a total of £92 billion worth of savings, with the average secret savings account containing £8,717, according to research from Post Office Savings.
 
Two in five (41 per cent) secret savers are hiding their savings from their partners. Those who are married (27 per cent) are much more likely to keep their savings concealed from their spouse than those co-habiting or in a more casual relationship (14 per cent). Sadly, savings silence causes tension for 13 per cent of people, and for 16 per cent of married couples this has caused a break-up. 
 
The research reveals many savers keep quiet because they are concerned revealing details might have unintended implications. One in six (16 per cent) secret savers fear others will ask to borrow money, and a further 15 per cent worry if they lend money they won't get it back.  Half (50 per cent) keep schtum because they believe their finances are a private matter which shouldn't be discussed, and a careful 13 per cent don't want to make their non-saving friends and family feel uncomfortable.
 
Henk Van Hulle, Head of Savings and Investments at Post Office said: "Despite money matters being a bone of contention with many people, especially those in relationships, it is interesting that people still choose to keep their savings secret from those closest to them.
 
"Many believe there is still something fundamentally embarrassing about discussing personal finances, but a fair few are worried about the implications of revealing details. Some worry they won't get the money back if they lend to family and friends, indicating people may be concerned about the possible tensions caused by unpaid debts."
 
The research also investigates how and why people save, revealing an encouraging 29 per cent are ‘savvy savers', choosing to put money away each month in order to achieve a specific goal. However, just under one in five (19 per cent) admit to being ‘big dippers', frequently making withdrawals from their savings account.
 
Worryingly, just over two in five (43 per cent) who dip into their savings rely on their savings to pay for everyday expenses such as the supermarket shop and household bills. In some cases, dipping into savings is just a case of bad luck with nearly two-thirds of people (61 per cent) doing so to fund an unexpected expense. A fashion conscious one in five (19 per cent) regularly take money out of their savings to pay for new clothes, and one in ten (11 per cent) take money from their accounts to lend money to family or friends. Five per cent rely on savings to help fund retirement.
 
Unfortunately, many may have less in their pots than five years' previous - two in five (42 per cent) savers state they are now putting less money into their accounts.
 
Henk Van Hulle, continued: It's worrying to see so many people are having to regularly dip into their accounts to pay for everyday expenses. This suggests many are still feeling the pinch and aren't experiencing the benefits of a slight recovery in the economy.
 
"In contrast, it's reassuring to see some ‘savvy savers' are a putting a little away every month. We strongly encourage people to have funds in reserve to prepare them for every eventuality and this should aim to cover lifestyle and household bills for at least six months. The fact that five per cent of savers are taking money from savings pots to fund life after work also highlights the importance of making sure we have a sufficient rainy day fund."
 
Adopting savings habits

The apple does not seem to fall far from the tree as more than a third (35 per cent) think their saving habits, good and bad, have been influenced by their parents. A further 14 per cent believe they are replicating the savings habits, good and bad, of their partners.
 
It's perhaps unfortunate only one in 16 (six per cent) take a tip from the savvy older generation and believe they have been influenced by the savings habits of their grandparents.
 
To find out more about Post Office savings, pop into a branch or go online at postoffice.co.uk/savings.