Britons blow £50 billion of savings on holidays each year - Savings - News - Moneyfacts

News

Britons blow £50 billion of savings on holidays each year

Britons blow £50 billion of savings on holidays each year

Category: Savings

Updated: 31/10/2008
First Published: 22/08/2008

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Brits are blowing their hard earned savings on holidays, according to new research conducted by Abbey Savings. In fact, over one in four Brits (26 per cent) believe that the best way to spend excess money is to go on holiday, rather than save.

According to the research, Brits spend on average an amount equivalent to 10.1 per cent of their net income - or by their reckoning £1,650 - on going on holiday each year. This equates to £81 billion spent on holidays by the UK's adult population each year.

62 per cent of Britons use their savings to pay for these holidays, meaning a whopping £50.4 billion savings could be raided each year to pay for holidays. The interest lost from taking out these savings could be as high as £3.2 billion if savers were invested in a high paying savings account - such as Abbey's eSaver Direct paying 6.5 per cent.

This appears to be part of an increased trend towards Britons spending swathes of money on holidays. The research showed that while 46 per cent of Britons did not list saving for the future amongst their top three priorities, 33 per cent of Britons felt that going on expensive holidays was one of their top three priorities.

Reza Attar-Zadeh, Director of Savings and Investments at Abbey, said: "If people cut back a small proportion of the amount they spent on holidays and kept their savings, this would make a real difference to their financial wellbeing. With savings rates at excellent levels, there has never been a better time to save for the future."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.

Start saving for Christmas… 2017!

Christmas is just around the corner and our annual festive splurging is starting to step up, but are you prepared? It may be too late to start saving for this year’s festive spend, but it’s never too early to start for next year’s!
 
Close