Savings shortfalls highlighted - Savings - News - Moneyfacts

News

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 It is now over 6 months old so the content may be out of date.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

Find the best savings account for you - compare savings accounts

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 Any products featured may be withdrawn by their provider or changed at any time.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

6 of the best monthly interest savings accounts

Monthly interest savings accounts pay interest on your savings each month – as opposed to yearly – and therefore allow you to take a regular income from your hard-earned cash.

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.
 
Close