13.5 million Brits failed to save a penny in 2008

The full extent of ‘credit-crunched' savings habits are revealed as a turbulent 2008 draws to a close. Almost 31 million Brits (64%) have managed to put at least some money away during 2008. However 13.5 million Brits (28%) haven't saved at all this year, and while half of them regret it now, the other half are surprisingly unconcerned, according to research from Alliance & Leicester Savings.

Looking back....

Of the two thirds (64%) of Brits who have saved in 2008 a fifth (21%) say they have been shaken by the current financial climate and wanted to plan ahead for 2009 by building up a savings pot.

33% have saved the amount they wanted and are pleased
29% have been careful with spending and have saved more than expected
32% saved a specific amount from their monthly salary.

However, 2008 hasn't been quite so fruitful for others:

19% are disappointed they have not saved as much as intended
18% of people have ‘dipped' into their savings more this year to meet extra costs and bills
12% have saved - but then spent most of it.

Hetal Parmar, Manager for Savings at Alliance & Leicester, said: "At the end of a rollercoaster year, it's encouraging to see a good proportion of Brits developing a disciplined savings habit by saving regularly. What's surprising is the number of people who still haven't put any money aside and aren't concerned about it. I would urge them to follow the example set by the majority by building a nest egg for themselves. This will provide a safety net during 2009 and beyond.

"The New Year is a great starting point for new savers, even putting away £10 a week will soon start to add up. Think of it as paying another bill by setting up a standing order from your current account to your savings account - this is an easy way to get into the savings habit."

Looking forward...

The research reveals that 2009 could be the year for saving, with people already making big plans; one in ten (10%) are planning to start saving for the first time in the New Year, and many (32%) hope to save more next year than they did this year - with the younger generation most optimistic about increasing their nest eggs (43%).

Top Five New Year's Resolutions for 2009:

Take regular exercise - 40%
Lose weight - 39%
Cut down on spending - 26%
Save more money - 25%
Learn a new skill - 20%.

Not everyone is as optimistic about 2009, with some admitting (9%) that while they will continue to save next year, they expect it to be less than they set aside in 2008, and a further quarter (23%) don't expect to have any spare cash at all next year and will not save - this is particularly apparent among the elderly (31%).

Hetal Parmar continues: "The tradition of kick-starting a new year with a ‘wish-list' of resolutions clearly lives on - our research found the old favourites of exercising more and losing weight snatching the top two spots for 2009. However, finances are clearly a big priority for us next year too, with Brits wanting to cut down on their spending and to save more of their hard earned cash - over and above stopping smoking or finding love!

"It's encouraging to see Brits are becoming more aware of the importance of a savings pot. When it comes to the crunch, it makes a big difference if you have a financial cushion to fall back on."