Retirement
Britons save more each month than a decade ago – NS&I
British consumers are saving a higher proportion of their monthly income than they were a decade ago, according to figures from NS&I.
Its latest Quarterly Savings Survey found savers are now setting aside 7.76% of their income or £98 a month on average, compared to 6.42% (£85) five years ago and 6.70% (£82) a decade ago.
However, while encouraging, savings levels have yet to return to the peak of 8.31% reached in Spring 2011 and the monetary figure has yet to exceed the £104 recorded in Winter 2012.
The report also found that the number of people saving for a holiday or special occasion has dropped over the years from just under half (47%) in 2007 to four in ten (40%) today.
This trend also follows for those saving money for house purchases, mortgage payments or home improvements with 41% saving for this reason in 2007, compared to just a third (33%) currently.
The ability to save for retirement has also decreased with 38% putting savings aside for this purpose in 2007, compared to 22% now.
Elsewhere, the study revealed the way people manage their finances has changed dramatically over the last 10 years.
A decade ago, three quarters (75%) of Britons managed their finances in person, by visiting a bank or building society branch. Today, this figure has dropped to 54% as online channels for money management, such as the internet, or via apps on tablets or smartphones have seen dramatic growth.
Some 72% who used to manage their finances in branch, now use the internet to do so.
Changes in the method used to manage finances
Method | 10 years ago | Now | In five years time |
---|---|---|---|
On the internet | 29% | 74% | 68% |
Visiting bank/building society in branch | 75% | 54% | 35% |
Phone | 20% | 17% | 11% |
Via bank/building society Smartphone apps | N/A | 14% | 19% |
On a tablet device | N/A | 9% | 20% |
Julian Hynd, director of retail at NS&I, said: “The way customers use and access the internet is changing, and in turn, the way they manage their money is changing. Over the last ten years we saw a switch from customers banking at branches to going online.
“Over the next decade, we will see smartphone and tablets emerge as a key means for money management as customers look to take more control of their finances while on the move or at a time that is convenient to them.”