Six million people have no savings - Savings - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Six million people have no savings

Six million people have no savings

Category: Savings

Updated: 29/06/2011
First Published: 29/06/2011

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 It is now over 6 months old so the content may be out of date.

Six million people in the UK are walking a financial tightrope as they have no savings in the bank.

New data from National Savings & Investments (NS&I) – popular amongst savers as it is backed by the Government – has revealed that 13% of the population have no savings.

It means that around six million people could be a job loss or an illness away from genuine financial hardship.

On average Britons are setting aside just more than 8% of their monthly pay cheques, equating to around £100 a month.

But more than a third (36%) of the population do not believe they have enough money to cope in an emergency. Looking ahead, savers are also pessimistic about their ability to save.

A quarter (25%) of Britons said they were less likely to save over the next three months.

Despite savers struggling at present, there is cause for optimism.

Encouragingly, 16-24 year olds appear particularly committed to saving money. Two fifths say they set themselves savings goals, compared to only a quarter (25%) of those aged 35-44.

This younger generation is also more confident in their ability to save in the coming months. Forty-four per cent of 16-24 year-olds said they are more likely to save in the coming months compared to just 14% of 35-44 year-olds.

"The findings show that it really doesn't matter how old you are or how much money you earn when it comes to adopting good savings habits - it seems that the older generations could learn a thing or two from these younger savvy savers," said Tim Mack, savings spokesperson for NS&I.

If you are one of the six million with no savings cushion at all, you should consider an account which allows you to put in just a small amount whenever you can.

There are a number of accounts that can be opened with as little as £1 and can be operated online, making your savings quick and convenient

They include:

Find the best savings rates 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.

 
Close