Brits saving less in 2010

The average person in the UK has less savings now than they did at the start of 2010 – showing just how much the hard economic times are still hitting the pocket.

That’s according to the ING Direct Consumer Savings Monitor which shows savings are down by 8.3% in the first quarter of the year to just £2,023. 

The new figures suggest that despite it being almost a full five months ago the fall-back in savings has been driven by a focus on re-paying Christmas debt. Today’s figures means the average person has just 1.6 times their monthly salary in savings. This is a worryingly low level to fall back on especially bearing in mind currently the average unemployment period has increased to six months.

But it’s not all bad news. The report also reveals we’re keen to save more and are looking to a new government to help them. The recent increase in the ISA limit has been welcomed and we’re looking to see further action, with tax-free savings for all basic rate tax-payers a sure-fire vote winner.

Commenting on the findings, ING Direct CEO Johan de Wit says: “Our figures give a true picture of the savings wealth of ordinary people, because they allow for the fact that more than a third of savings wealth is held by the top 5% of the population.

“After Christmas, you’d expect there to be some seasonal adjustment as Britons re-balance their debts, but it’s encouraging to see so many households are looking to re-build their savings ‘buffer’ for the remainder of the year.

“The fact that the typical unemployment period recently increased from five to six months brings home the importance of having a good savings ‘buffer’ in place. The ING Direct Consumer Savings Monitor shows people want to increase their savings and naturally would welcome initiatives from the future government that encourage savings.”

For more information visit: consumersavingsmonitor.com