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Savings shortfalls highlighted

Savings shortfalls highlighted

Category: Savings

Updated: 11/11/2009
First Published: 11/11/2009

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 It is now over 6 months old so the content may be out of date.
More than a quarter of British parents with young children have no savings or investments to use in times of difficulty or as a nest egg for their offspring's future, new research has revealed.

According to Abbey Savings, a further 20% of parents have less than £1,000 to fall back on, while a quarter have reduced the amount that they are saving by as much as £3,300 a year.

More worrying still is that an increasing amount of parents admitted to dipping into existing savings, withdrawing an average of 28%, or £1,800, of their total savings this year.

On a positive note, nearly one third (29%) of parents revealed they intend to start saving more each month.

The survey comes as parents struggle to contend with the rising cost of childcare and escalating fees relating to education.

"It's vital for everyone to have a rainy day fund, even more so for parents, who must juggle the need to build up a nest egg for their children's future with the need to provide for the here and now," said Reza Attar-Zadeh, Director of Savings and Investments.

"It is concerning that many families are saving less, as this could leave them facing financial difficulty in the future. It's encouraging to see that some families are looking ahead and planning to save more - we hope this trend will continue."

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