Savings up by a third since 2000
Brits have increased their savings by 31% since 2000, despite talk of soaring consumer debt, according to NS&I.
The Century of Saving report also predicts that the savings ratio will rise significantly in the years ahead, though it could be 50 years before the majority of Brits become regular savers.
The report, which reviews the past 50 years and future 50 years of saving, conducted for NS&I by think tank The Future Foundation reveals that gross savings have risen significantly from just £1.1bn in 1957 to £43.9billion in 2007.
This reflects both rising affluence and savers’ increasingly sophisticated approach to building their nest eggs. Looking to the future, the research also forecasts that the savings ratio will rise further to 7.5% in the long term, up from 5% in 2006 and from a 50-year low of 3.7% in 2004.
Furthermore, 50% of adults look set to become regular savers by 2060, seeing diligent savers creep into the majority for the first time, though this milestone may even take place as soon as 2057. This represents only a gradual rise from today’s 43%, despite the large rise in total savings that is being seen.
Dax Harkins, NS&I’s senior savings strategist, said: “Advances in technology over the last half century such as telephone and internet banking have made it easier for savers. We expect future developments will play a part in boosting the future savings ratio by making new products possible and allowing new ways to access them using convergence products such as Apple’s iPhone.
“However, simple measures can still prove the most effective. Setting up a standing order to make an automatic savings contribution just after pay-day is one of the most effective ways to ensure that saving becomes a lifetime habit.”