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2014 savings rise comes to an end

20th October 2014 Print

The steady rise in savings levels seen over the last year, from 7.42% of income saved in summer 2013 to 8.21% in spring 2014, came to an end in the summer, according to NS&I’s latest Quarterly Savings Survey.

Britons are now saving 7.63% of their income each month.   In pounds and pence the picture is similar, having seen savings levels increase from £95.73 in summer 2013 to £105.43 last quarter. The amount saved per-month now equates to £101.66 on average. The picture is not entirely bleak however. Compared to previous summer’s savings levels they are still up, from 7.49% (£94.76) in 2011, 7.17% (£89.80) in 2012 and 7.42% (£95.73) in summer 2013.

This decrease in the percentage of income that people are saving is largely driven by women, with men now saving more as a percentage of income (7.89%) than women (7.34%) in contrast to the first half of 2014. In pounds and pence however both men and women are still saving more than a year ago (summer 2013 - men: £120.74, women: £82.78).

Across the board, except for those aged 16-24 and 65+, savings levels are down.  Britons aged 65+ are able to save the most money each month, putting aside on average £128.33, while 16-24 year olds save the least a month, only being able to put aside £80.58. Though as a percentage of income the top savers are the 16-24 and 65+ age groups.

Julian Hynd, Retail Director at NS&I, said: “Over the summer months there was cause for concern as the consistent rise in savings we’ve seen over the last year came to a sudden halt. With Christmas on our doorstep, and an interest rate increase predicted for next year, it’s essential we regularly review how much we can put aside in savings. It’s also important to review now the personal impact interest rate rises may have, and if necessary take steps to make sure that an increase in payments, including mortgages, is affordable.” One in five (20%) people living in Briton, say they have under £1,000 in savings according to figures taken from NS&I’s latest Quarterly Savings Survey, with 16% admitting they don’t have any money put aside at all. Again, women and the middle aged are worse off, with 19% of women (compared to 13% of men) admitting that they have no savings.”