You are here: Home - Saving-Banking - News -

Brits’ rainy day savings ‘way below’ recommended amount

Written by: Paloma Kubiak
Nationally, Brits have the equivalent of four weeks of salary in savings, which is much lower than the recommendation by financial planners, but there are huge discrepancies across the region.

Online investment service Wealthify has today launched its Regional Savings Index which analyses the state of Britons’ savings relative to wages.

It found that the average Brit has saved around a month’s worth of earnings but this amount is “way below” the three months recommended by financial planners which means “the country simply can’t protect [itself] from financial shocks.”

The research found that there are big discrepancies across regions with the East Midlands having the largest savings buffer with 11 weeks’ worth.

London comes in second place as the residents here have nine weeks of savings should the worst happen.

In third place was Wales where the population has saved six weeks of their salary into their savings accounts.

At the other end of the scale, those living in the North West have the least amount of savings, with only a two week buffer.

Worryingly, the index which polled 1,000 people aged 19-55 earning under £50,000 a year, showed that women are saving less than half that of men and in some cases, men have saved 10 times more than women.

Wealthify calls itself an affordable and easy-to-use online investment service. It is significantly more cost-effective than alternatives, requires zero investment knowledge and is open to anyone, regardless of whether they have £250 or £2 million to invest.

Richard Theo, CEO and co-founder of Wealthify, said: “The purpose of this index is to highlight how badly people are protecting themselves against financial shock. Hopefully the index will help people recognise the risks they are taking by having inadequate savings. By comparing savings to salary we’re showing the UK’s savings crisis in a new light.

“Hardly anyone in the country is putting away the three months’ equivalent salary recommended by financial advisers, let alone having a proper long term plan. Something has to change.  We will continue campaigning to highlight the fact that Britons need not only to save more, but take better care of their money too. If they don’t, people’s financial futures could be far from comfortable.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week