Highest level of monthly savings in ten years at 8.52% of pay
- Of those with a savings goal, 35% are saving to cover housing costs
- Almost a third (29%) said they don’t have enough money set aside in case of an emergency
Monthly savings were 9.25% higher in 2014 than 2013, rising to £113.77 per month, equivalent to 8.52% of average take home pay. This is the highest share of monthly pay to be saved since NS&I began its quarterly savings survey in 2004. It reached its lowest point at 5.82% in spring 2005.
Average monthly savings rate 2005-2014
|Winter||Average saved per head||Savings as a percentage of income|
What are people saving for?
The majority (74%) of those who put money aside each month were doing so without a goal in mind and saving simply because they believed it was the right thing to do. Almost half (49%) of those aged 25-34 and 41% of those aged 16-24 were saving to cover housing costs.
Of the 26% who were saving with a goal in mind, 42% were looking forward to a holiday or celebrating a special occasion while 35% said they were saving to cover housing costs which includes saving for a deposit.
Julian Hynd, Retail Director at NS&I, said:
“The latest results are encouraging, but we hope more people will be putting aside money into their rainy day savings, so they feel ready to deal with an emergency should one arise.”
Savings safety net
Despite the increased levels of savings, almost a third of savers questioned (29%) did not believe they had enough money set aside in case of an emergency.
Savers aged 65 and over said they were best prepared for an emergency with 73% feeling comfortable with their savings, while only 48% of those aged 35-44 felt prepared.
The survey also showed that 50% of savers with children under 15 think that they had the savings in place to cope with an emergency. In addition, 32% of those approaching retirement age (55 – 64) said they had less than £1,000 in savings with one in ten (18%) suggesting they had none.
Do you think you have enough money to cope in an emergency?
Notes to Editors
The Winter 2015 NS&I Quarterly Savings Survey was conducted by TNS among 2,431 British adults aged 16+ between 29 January and 5 February 2015. The survey has been running every quarter since winter 2004, and provides a snapshot of how the nation is saving.
NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to more than 25 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.