Brits save for dreams

A new "Alternative Census" study of 10,000 UK residents reveals that despite the difficult economic climate, UK residents are adopting a more austere approach to their finances with 84 per cent of people now actively saving for the future.

The nationwide research carried out by the Post Office revealed that 18 per cent of people claim that saving is their biggest financial priority and 43 per cent try to save even a small amount each month as they feel this is better than nothing.

The younger generations are the biggest savers with 20 per cent of 16-34 year olds claiming that saving is their priority, compared to ten per cent of those between 35 and 79 years old.

Despite tough economic times, a holiday appears to be the last luxury people will sacrifice, topping the list of things that people are saving for (36 per cent). The saying that our home is our castle also reigns true with 19 per cent saving for a deposit on a property and 15 per cent putting money aside for home improvements. Nearly a fifth (18 per cent) of people are also putting aside money for a rainy day.

As early as July our thoughts had already turned to Christmas with more than one in ten (12 per cent) people admitting to saving for the festive season during the summer months - indicating that we are becoming a more savvy nation when it comes to financial planning.

Top ten things people are saving for:

1. Holiday (36 per cent)
2. Deposit for a property (19 per cent)
3. A rainy day (18 per cent)
4. Home improvements (15 per cent)
5. A new car (15 per cent)
6. Christmas (12 per cent)
7. Wedding (10 per cent)
8. To go travelling (9 per cent)
9. Education (8 per cent)
10. Starting a family (7 per cent)

Stewart Fox Mills, Head of Post Office Customer Insight said: "Although many people are stretched financially at the moment, it’s clear from our ‘Alternative Census" study that we still have clear aspirations that we are saving carefully to achieve. Whether it’s the big things such as saving to buy a house through to budgeting for holidays, saving has become an increasingly important part of our financial planning. These difficult economic times seem to have made us value our money more and prioritise what is really important to us."

The Post Office ‘Alternative Census’ was commissioned to coincide with a new advertising campaign that focuses on the fact that there is more that unites us than divides us as a nation. Cementing its position firmly in the heart of the community, the campaign builds on the Post Office’s heritage and reflects work carried out in the 1920s by the General Post Office when it commissioned a series of films into UK life.

The Post Office offers a wide range of savings and investment options for everyone from short-term savings to longer-term investments, including a range of products by NS&I. To find out more, pop into your local Post Office branch or visit postoffice.co.uk.