£21,888 is the saver’s salary

More than one in two British people say they don’t earn enough to save on a regular basis, according to new research from Birmingham Midshires.

According to the Birmingham Midshires Saving Britain report - which regularly probes the savings habits of the nation - 55 per cent of Brits don’t think they earn enough to save.

The average amount British savers think they need to earn in order to be able to afford to put money away in a savings account each month is £1,824. However, a third (33 per cent) of Brits cited £2,000 or more as the minimum monthly salary required in order to be able to afford to save. While almost one in ten (8 per cent) people would not put away savings unless they were pocketing an annual salary of £36,000.

Those in the 35 to 44 age group appear to suffer the most from financial pressures. They view a monthly pay packet of just over £2,000 as a necessity before engaging in a savings habit. This contrasts strongly with younger people, who state that £1,423 is a sufficient threshold.

Jason Robinson, Director of Savings Operations at Birmingham Midshires, commented on the findings: “The big concern is that savings seem to be viewed by many as an unaffordable luxury. With interest rates at an all-time high, there has never been a more opportune moment for people to set aside their money in a lucrative savings account. By putting aside a little and often, it will not be long before savers reap the benefits of adopting good savings habits.”

Londoners think they have to earn more than any other region before they can afford savings. For Capital residents, a saver’s salary is £24,500

Divorcees are more likely to say they cannot afford to save than married people or those who live in a civil partnership (75% vs 53%)

Those in Yorkshire are twice as likely to be able to afford to save than those in the North East (19% vs 9%)