2014 savings rise comes to an end
- Women and the middle aged are least able to save this quarter
- A fifth of Britons are living with under £1,000 worth of savings to their name, and a further 16% have none at all
NS&I’s latest Quarterly Savings Survey has revealed that the steady rise in savings levels seen over the last year, from 7.42% of income saved in summer 2013 to 8.21% in spring 2014, came to an end in the summer. Britons are now saving 7.63% of their income each month.
In pounds and pence the picture is similar, having seen savings levels increase from £95.73 in summer 2013 to £105.43 last quarter. The amount saved per-month now equates to £101.66 on average. The picture is not entirely bleak however. Compared to previous summer’s savings levels they are still up, from 7.49% (£94.76) in 2011, 7.17% (£89.80) in 2012 and 7.42% (£95.73) in summer 2013.
|% of income saved||Average saved per head|
|Summer 2013||7.42% ↑||£95.73 ↑|
|Autumn 2013||7.76% ↑||£97.89↑|
|Winter 2013/14||8.04% ↑||£101.03↑|
|Spring 2014||8.21% ↑||£105.43↑|
|Summer 2014||7.63% ↓||£101.66 ↓|
This decrease in the percentage of income that people are saving is largely driven by women, with men now saving more as a percentage of income (7.89%) than women (7.34%) in contrast to the first half of 2014. In pounds and pence however both men and women are still saving more than a year ago (summer 2013 – men: £120.74, women: £82.78).
|% of income saved- women||% of income saved- men||Average saved per head-women||Average saved per head-men|
|Autumn 2013||7.76% ↑||7.81% ↑||£81.09 ↑||£114.62 ↑|
|Winter 2013/14||8.36% ↑||7.84% ↑||£89.03 ↑||£113.21 ↓|
|Spring 2014||8.59% ↑||8.04% ↑||£89.81 ↑||£121.54 ↑|
|Summer 2014||7.34% ↓||7.89% ↓||£82.78 ↓||£120.74 ↓|
Across the board, except for those aged 16-24 and 65+, savings levels are down. Britons aged 65+ are able to save the most money each month, putting aside on average £128.33, while 16-24 year olds save the least a month, only being able to put aside £80.58. Though as a percentage of income the top savers are the 16-24 and 65+ age groups.
|Monthly savings as percentage of average income||Average saved per head|
|Summer 13||Spring 14||Summer 14||Summer 13||Spring 14||Summer 14|
Julian Hynd, Retail Director at NS&I, said: “Over the summer months there was cause for concern as the consistent rise in savings we’ve seen over the last year came to a sudden halt. With Christmas on our doorstep, and an interest rate increase predicted for next year, it’s essential we regularly review how much we can put aside in savings. It’s also important to review now the personal impact interest rate rises may have, and if necessary take steps to make sure that an increase in payments, including mortgages, is affordable.”
One in five (20%) people living in Briton, say they have under £1,000 in savings according to figures taken from NS&I’s latest Quarterly Savings Survey, with 16% admitting they don’t have any money put aside at all. Again, women and the middle aged are worse off, with 19% of women (compared to 13% of men) admitting that they have no savings.
|Age range||% who don’t have any savings|
|16 – 24||11%|
|25 – 34||20%|
|35 – 44||24%|
|45 – 54||23%|
|55 – 64||13%|
Furthermore, one in four people living in the North East of England (25%) and in Scotland (24%) admitted they have under £1,000 in savings.
Notes to Editors
The summer 2014 NS&I Quarterly Savings Survey was conducted by TNS among 2,424 British adults aged 16+ between 14 and 18 August 2014. The survey has been running every quarter since winter 2004, and provides a snapshot of how the nation is saving.
- Further data splits (including regional data) is available on request.
- NS&I is one of the UK’s largest financial providers with over 25 million customers and more than £100 billion invested. All products offer 100% security, because NS&I is backed by HM Treasury. NS&I products are available over the telephone, internet, post and by standing order. Savings tips including a later life guide and further information on personal finance are available in the You and Your Money section on nsandi.com.