35% have less than one month’s income saved

Published on

save-calc

50% of the UK population have less than two months’ income,in savings, which, based on average UK full time earnings, is less than £4,308.

The latest Lloyds Bank Savings Index says this figure includes 35% of people who have less than £2,154, or one months’ income saved. Only 16% of the population have more than four months’ of income in savings, which equates to savings in excess of £8,616, based on the average full time salary.

Despite low levels of savings, people understand the importance of saving more for a rainy day, with 87% saying it is important to have a minimum amount to protect against unexpected costs.

50% say that they would need at least two months worth of income (£4,308) in emergencies, with this figure being made up of 22% who would need four months’ income or more.

32% can’t save due to a lack of spare money, yet despite this figure being the main reason for not saving, it has reduced significantly in the past year. In Q3 2013 this figure was 11 percentage points higher at 43%.

The number of people who have been able to save remains stable from previous quarters, with 26% stating they are able to save regularly throughout the year. 30% haven’t been able to save at all however.

Philip Robinson, Lloyds Bank savings director, said: “Although confidence in the economy is improving, one in three of us still have less than a month’s income in savings.

“People do recognise the importance of saving and if they are able to get in the habit of putting away small amounts each month, the rainy day savings pot will grow as their circumstances improve.”

Attitudes towards savings remain similar to previous quarters, with 86% agreeing that it’s important to save regularly. In addition 84% of people would rather pay off debt before they start to save, with this figure being stable over the past year. 66% expect to save ore over the next 12 months, up two percentage points on a year earlier. 24% think they will save less in the next 12 months or stop saving altogether.

Research was conducted via online omnibus by TNS Financial Services. 3,446 respondents answered the survey through July, August and September 2014.

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

LMS becomes affiliate member of the Conveyancing Association

The Conveyancing Association has welcomed LMS as its newest affiliate member, marking a formal...

Molo cuts UK resident buy-to-let rates

Molo has reduced its standard buy-to-let fixed rates for UK resident landlords. The changes mean...

Jitty launches mortgage-linked budget calculator with L&C

Jitty, the AI-driven homebuying platform, has teamed up with L&C Mortgages to launch what...

Pivotal Growth names new group chief executive

Pivotal Growth, the mortgage broker consolidator, has appointed Mayank Prakash CBE as its new...

StreamBank completes £455k bridge for holiday let purchase

StreamBank has completed a £454,790 bridging facility to fund the purchase of a holiday...

Latest publication

Latest opinions

Bridging the Pond: How large is the US bridging finance market, and compared to the UK?

When we first got started with LendInvest in the UK, post the financial crisis,...

Passing the affordability exam

As teachers and students of various ages have spent August nervously opening exam results...

Investors are changing their approach – and lenders should too

The buy-to-let market never stands still, but the pace of change in recent years...

Leasehold fees, specialists and the need to shop around

Leasehold properties account for around 20% of all dwellings in the UK, and while...

Other news

LMS becomes affiliate member of the Conveyancing Association

The Conveyancing Association has welcomed LMS as its newest affiliate member, marking a formal...

Molo cuts UK resident buy-to-let rates

Molo has reduced its standard buy-to-let fixed rates for UK resident landlords. The changes mean...

Jitty launches mortgage-linked budget calculator with L&C

Jitty, the AI-driven homebuying platform, has teamed up with L&C Mortgages to launch what...