- Savings levels have increased for the third quarter in succession.
- Britons are now saving 8.09% of their incomes each month, £104 in real terms, the highest amount recorded by the survey.
- Britons with goals are saving an extra £39 each month: £150.12 a month, compared to £111.09 by those saving for no specific reason.
- The younger generations are leading the savings trend with 25-34 year olds saving 9.29% of their incomes each month, £125 in real terms
NS&I’s latest Quarterly Savings Survey shows that Britain’s savers have overcome the Christmas spending hangover to record the highest amount saved since the Survey began nine years ago. Savings levels have increased, for the third quarter in succession: Britons are now saving 8.09% of their income each month, £104 in real terms, a rise from 7.33% (£90) in the previous quarter and 7.66% (£95) in the same period last year.
It is the first time since Spring 2011 that the average amount Britons are saving each month (£104) has broken the £100 barrier, and is the highest amount recorded since the Quarterly Savings Survey began in Winter 2004. Furthermore, the amount of Britons not making any savings each month has decreased with now one fifth of Britons (20%) putting nothing aside, compared to 25% in the previous quarter.
NS&I’s findings suggest that all age groups have improved their savings levels (apart from those aged between 35-44) but it is the younger generations, in particular, that are driving the savings trend upwards. Those in the 25-34 age group are now saving 9.29% of their incomes each month, £125 in real terms – well above the national average of £104 and the highest figure recorded since Winter 2010. 42% of savers aged between 25-34 are using savings goals to help them save, with of these 59% of saving for a home, a mortgage or for home improvements.
John Prout, NS&I Retail Customer Director, said:
“It is really good to see the average amount saved per month has risen over £100, especially as the cost of Christmas can often be felt for some time after. The research suggests that most age groups in Britain are saving more and this corresponds with an increased use of savings goals from last summer, which can only be an encouraging sign for the future.”
Just over a quarter of Britain’s savers (28%) set specific savings goals, and the evidence shows that Britons with such focus are saving an extra £39 each month, equating to £150.12 a month, compared to £111.09 saved by those saving for no specific reason.
The main drivers for the desire to save in recent years has been to join the property market, get away on holiday or save for a special occasion, or save in case of emergency and this quarter findings prove no different. 38% of Britons with a savings goal stated that they were looking to save for a deposit to buy a house, pay off a mortgage or for home improvements. 38% admitted they were saving for a holiday or special occasion, with women (42%) the most keen to save for this reason, while 26% stated that they were saving in case of an emergency.
John Prout continued:
“Setting savings goals can help savers gradually build their pot to save for particular long-term targets and our research suggests that setting a goal enables savers to save an extra £39 each month."