Non-savers cite lack of spare money

Almost 40% of people aren’t saving because they don’t have enough disposable income each month, a survey by Lloyds Bank has revealed.

A quarter of the 3,500 people who responded to the survey said they were able to save regularly throughout the year, with the 55-64 and over-65 age groups most likely to do so.

Other interesting findings were:

  • 66% expect to save more or the same over the next year
  • 34% have less than one month’s income put away
  • 24% will either save less or stop saving altogether over the next 12 months
  • 31% of people in Greater London save regularly throughout the year, compared with 21% of people in the North East
  • 67% of those that have saved in the last 12 months have dipped into their savings at some point, most commonly to pay for a holiday
  • 86% said it’s important to have a minimum amount of savings to cover unexpected costs, but just 52% feel they have enough.

Lloyds Bank’s savings director, Andy Bickers, said:

“Despite widespread news about the economy improving, four in 10 still aren’t saving each month. This shows there is still some way to go for confidence in the economy to filter down to the man on the street. Attitudes to saving are still positive though, and if people are able to get in the habit of just putting away a small amount each month, this can be increased as circumstances improve.”

The study follows research from the Post Office that found the amount people could potentially save each year has fallen by 10% since 2010.

After total expenditure, the average UK household has £3,781 that could potentially go into savings. This puts the UK at 11 in a list of 18 countries in which the cost of living is similar, behind Spain and Italy but ahead of the USA.