- Britons are now saving 7.33% of their income each month, £90 in real terms
- More than half of Britons savers (52%) feel they have enough money in savings to cope in an emergency, an increase from 50% Spring 2012.
- However future prospects are cautious, 28% believe they’ll save less in the next three months
New research released from NS&I’s Quarterly Savings Survey shows that savings levels have risen for the second successive quarter. Britons are now saving 7.33% of their income each month, £90 in real terms, a rise from 7.17% in the previous quarter. Albeit positive news, savings levels are rising from a low level previously. In Spring 2012, Britons were saving 7.08% of their income each month, their lowest amount for more than a year previously, and 28% of Britons now believe they won’t be able to sustain the same level of saving over the next three months.
The findings show that women continue to lead the savings race when it comes to the proportion of their income that they save, putting away 7.69% of their monthly income. This a steady increase from 7.65% in the previous quarter. However, it is men’s savings habits which have shown the most improvement and they are narrowing the gap between the two genders. Men are now saving 7.10% of their incomes, an improvement from saving just 6.82% in the last quarter. It should be noted however that men have traditionally saved more than women; this quarter saving £102.54, compared to £78.49 saved on average each month by women.
Savers in the 35-44 year old age group have led the upward swing in savings levels, now saving 7.22% of their incomes compared to 5.62% in the previous quarter (£103 in real terms compared to £81 in Summer 2012).
Encouragingly, a higher propensity of Britons savers this quarter feel that they have enough money to cope in an emergency, with 52% now stating they have enough put by, compared to 50% back in Spring 2012. 54% of male savers feel they have enough savings to cope in an emergency, up from 52% in Spring 2012, compared to 50% of female savers (48% in Spring 2012).
John Prout, NS&I Retail Customer Director, said:
“It is encouraging to see that savings levels have increased for the second quarter in succession, however we know that these are at low levels and the need for people to review every aspect of their spending to see if they can build up more of a financial cushion is still ever pressing.”
As savings levels have improved, the research suggests that the upward curve in saving may not last. As many as half of Britons (50%) stated that they thought there would be no difference in their likelihood to save over the next three months, while just over a quarter (28%) suspected that they would be less likely to save in the coming months. As many as a third (36%) in the 45-54 age group are less likely to save. Overall, this forecast is more negative than previously, in Spring 2012 20% of Britons expected to be more likely to save, and 25% expected to be less likely to save.
Of more concern is that a quarter of Britons (25%) do not make any savings in an average month. This is up from 21% in the last quarter and 19% this time last year (Autumn 2011).
John Prout, continued:
“The need to make even the smallest saving is so important and can make a big difference. It is concerning that as many as a quarter of Britons are not saving anything in an average month, so perhaps the New Year is the time to make a money saving resolution.”
Savings ideas including further information on personal finance are available in the You and your money section on nsandi.com.
About this research
The most recent NS&I Savings Survey was conducted by TNS, among 2,454 Great British adults aged 16+ between 06 November and 12 November 2012. We also refer to NS&I Savings Surveys with data collected by TNS from 16 August to 23 August 2012, among 2,448 Great British adults aged 16+, data collected by TNS from 4 May to 10 May 2012, among 2,444 Great British adults aged 16+ and data collected by TNS from 31 January to 9 February 2012, among 2,441 Great British adults aged 16+. The survey has been running every quarter since winter 2004, and is a snapshot of how the nation is saving.
NS&I is one of the UK's largest financial providers with over 26 million customers and over £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.