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Rising living costs deter savers

Rising living costs deter savers

Category: Savings

Updated: 07/05/2013
First Published: 07/05/2013

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 It is now over 6 months old so the content may be out of date.

A large number of would-be savers are unable to put money away on a regular basis, despite their best intentions, as the cost of living continues to rise.

The latest Lloyds Savings Index found that although 88% of people agree that it is important to have a minimum amount of savings set aside to cover unexpected costs, four in ten have no money left at the end of the month to put aside in a savings account.

Almost a quarter of those who are able to make regular deposits each month admitted that they often withdrew funds to deal with extra expenditure, whilst 12% claimed they had accessed their savings in order to pay off existing debts.

Around 20% of people said they had dipped into their savings to avoid going into their overdraft.

Results from the study also showed that whilst there is a generally strong appetite to save, 40% of respondents said they saw little point in saving at present due to low rates of return.

Andy Bickers, savings director at Lloyds TSB, said: "Consumers across the nation continue to be affected by the rising cost of living, which impacts if and how much can be saved.

"However it is great to see an increased appetite and interest in the importance of savings, even if people just put away a small amount each month this can then be increased when circumstances improve," he added.


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