Economic pressures squash the saving habit
According to the latest research by National Savings and Investments (NS&I), many individuals are currently unable to build up their savings. Indeed, six million people have no savings, while a third of the population is no longer financially equipped to deal with an emergency.
The average person is saving £100 each month, which equates to 8.3 percent of their income. Out of those who save regularly, just 26 percent had a goal for this money – including a holiday, house, car, retirement or their children’s future.
Perhaps surprisingly, those aged between 16 and 24 are more committed to saving than 35-44 years olds. Two fifths of the youngsters have savings goals, and nearly half of them expect to save more in the coming months. This compares to just a quarter and 14 percent respectively for the older generation.
Figures from the Office of National Statistics have confirmed how much of a problem this is, with the savings ratio dropping from 5.1 percent to 4.6 percent in the first quarter of 2011.
