NS&I’s Quarterly Savings Survey reveals the highest summer savings levels in a decade.
- Britons are now saving over £20 more a month than ten years ago.
- Britons expect to save even more this Autumn when savings traditionally spike
Savings levels in Britain rose over the summer months putting Summer 2015 as the healthiest on record for levels of personal savings in a decade, the latest research from NS&I reveals.
Britons are now saving 7.75% of their average income each month, an increase from 7.63% at the same point last year (Summer 2014), and significantly up from 6.98% five years ago. In monetary terms, this summer’s figure represents the highest amount saved per head in the summer recorded since NS&I’s Quarterly Savings Survey started in 2005.
This summer’s results show that Britons are saving on average £104.84 a month, continuing a trend over the past three summers of steady savings rises. Comparing Summer 2015 to Summer 2005, shows that people are putting aside £23.48 a month more into their savings pots.
A more prosperous Autumn ahead?
Although savings levels grew in Summer 2015, almost ten million (20%) of Britons savers say they are more or much more likely to save money in the next three months than previously. In fact the clocks going back has traditionally meant savings levels take a step forward – in 10 years of comparing Summer and Autumn saving, Britons have, on seven occasions, saved more after the clocks changed.
It is the younger age groups who are showing a commitment to an autumnal savings boost. Almost half (48%) of those aged 16-24 and a third (33%) of 25-34 year-olds think they will save more in the coming three months – this is a much higher rate than the older age groups.
Who expects to squirrel the most away this Autumn?
An impressive 78% of all Britons say that they will either maintain or increase their savings activity over the Autumn.
While is there a small difference in the amount of men (21%) and women (19%) expecting to save more in the coming months than before, just under a fifth of women (19%) think they are less or much less likely to save over the next quarter, compared to just 14% of men.
Perhaps surprisingly, over a quarter (28%) of parents with children aged 15 or under at home say they are expecting to save more in the next three months than those without children under 15 at home (16%). This may be because they are expecting to save after the summer holidays and before the indulgence of Christmas, while those without children may prefer to spend some savings on off-peak holidays in the colder months.
Encouragingly, the need to save appears ingrained regardless of income – with almost a quarter (23%) of those people taking home less than £500 per month saying they will save more than previously in the three months in the Autumn period. This is higher than last summer’s figure of 20% of lower earners committing to increase their savings over the Autumn. Also, just under a fifth (18%) of those who do not have any savings at all and over a quarter (27%) of those who have under £1,000 in savings think they will be able to save more in the Autumn than before.
Amount saved as a percentage of average income
|Year||Summer||Autumn||Difference Autumn vs Summer|
Jill Waters, Retail Director at NS&I, said:
“It’s encouraging to see that summer savings levels are at a record high, and we are encouraged that Britons think they will be more likely to save over the next quarter too. An autumnal savings boost is a good idea given the expenses of the festive season ahead.
“Regularly reviewing our savings behaviour and putting aside that bit of extra money each month – either for a rainy day or a big ticket purchase especially in the run-up to Christmas – is a good habit for us all to be in to. Now is a good time of year for people to look at their finances and evaluate what they can reasonably put aside, so people can plan for the expected and the unexpected.”
Could you cope?
While savings levels have reached a summer high and Britons expect to save as much, if not more in the next quarter, over half of savers in Britain (55%) have revealed that they feel they have enough money in savings to cope if an unfortunate financial emergency occurred. Encouragingly, this is the same figure as a year ago and is up slightly from two summers ago (53%). The gap has closed between men and women, with 56% of men and 54% of women thinking they could cope should a financial emergency arise –narrowing from 59% for men and 50% for women at the same period last year.
Jill Waters, Retail Director at NS&I, continued:
“’Saving for a rainy day’ is a term we are familiar with and usually constitutes putting three months money aside should the worst happen. It is pleasing to see how many Britons are actually doing this and as we have seen over the past few summers, the numbers are either rising or remaining at a satisfactory level.
“We are aware that saving can be difficult at certain times of year, whether that be because of sunny summer holidays or preparing for the festive season. By taking control of your finances, and putting aside some money for a ‘rainy day’, you can protect yourself should anything unfortunate happen, and have peace of mind that you have your emergency fund to dig in to, in order to help cover the costs of any unforeseen circumstances.”
Notes to Editors
The summer 2015 NS&I Quarterly Savings Survey Tracker was conducted by TNS among 2,473 British adults aged 16+ between 30 July and 3 August 2015. The survey has been running every quarter since autumn 2004, and provides a snapshot of how the nation is saving.