Overspending Brits raid meagre savings pots
Britons are unable to leave their savings alone, according to the latest findings from Birmingham Midshires Saving Britain campaign.
The research shows that while many Britons have good intentions to save, putting away an average of £587.38 each over the last three months, they have also raided over a third (37%) of this amount, an average of £219.73 each. As part of Saving Britain - the ongoing probe into the nation's savings habits - Birmingham Midshires polled the nation to see how much people have saved over the course of the past three months and how much of this they have taken out for a number of reasons. The findings question the assumption that the savings gap is simply an issue of people not saving. The Saving Britain data suggests people are saving - more than 60% put money away since August - but they are not leaving their nest eggs alone. The main culprits are married homeowners with children who, despite saving an average of £629.51 each over the past six months, have raided more than half of their savings (53%) at £343.64. Over-fifties are the most likely to leave their nest eggs intact, with one fifth (21%) raiding their savings (three monthly savings levels for this group stands at £976.67; £202.34 on average was raided per person). Other key findings: - Well-intentioned Brits saved an average of £587.38 over the three months from August to October. Their good intentions have slipped, however, as they have raided 37% - an average of £219.73 - of this during this period.
- The main reason why people have raided their savings is in order to top up their current account when they have overspent. On average, people have raided £50.91 of their savings to solve a cashflow problem. This accounts for nearly a quarter of the total amount raided (23%).
- Taking a last-minute break accounts for people removing £31.11 out of their savings accounts over the last three months. Homeowners with children are the most likely to raid their savings for this reason - having taken out an average of £87.97 since August.
- Retail therapy is a key reason for people to withdraw money from their savings accounts. People have taken out an average of £29.85 for this reason. Single under-thirties have taken the most out for comfort shopping - an average of £62.68.
- Debt is a big factor in hindering saving. People have raided an average of £29.16 from their accounts to pay off debts or appease bailiffs. Again, single under-thirties are the most likely to jeopardise their savings to clear debts - they have taken £49.02 from their savings accounts for this reason over the past three months.
- Household emergencies have proved to be a substantial reason why the nation has raided its nest egg. Britons have taken an average of £27.55 from their accounts for this purpose. Homeowners with children are the main culprits - raiding £40.14 for this reason.
- The nation is willing to lose out on savings in order to help others. On average, we have raided £23.46 from our savings accounts to lend to others. People aged over fifty are the most generous, having paid out £35.87 each over the past three months for others.
In the regions: - South Easterners have raided the most money from their savings accounts - an average of £519.12 each. They are also raiding more than they save - £519.12 compared to the £360.73 they have saved. This is concerning as at the end of the three months, their savings will be in the red, at -£158.39.
- The Welsh are raiding the least from their savings accounts - £52.26 of the £264.48 they have put away.
- People in Yorkshire have saved the most at £1,358.79. They have raided just a small portion of this, at an average of £77.99 each over the past three months.
Tim Hague, head of savings and investments marketing at Birmingham Midshires commented: "It is encouraging to see that savings levels have reached an average of £587.38 per person in the UK over the course of the last three months. However, we are a nation of fritterers as shown by the fact that we are spending over a third of the nest eggs we have saved up over the past three months. With Saving Britain, we are working to encourage people to save as much as affordably possible. "However, the research shows that people may be overstretching themselves if they are removing such a substantial amount from their savings. While it is important to save for life's eventualities, we would urge people to realistically assess their budgets and think through their savings allocation so they put aside a realistic amount of money each month, without undoing their hard work and good intentions when they need some spare cash." Financial News Feeds provided by OneCompare.com
Date published: 12/13/2004 11:28:36 AM
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