Summer savings levels hit record high
Its quarterly savings survey found Brits put away 7.75 per cent of their income each month on average, an increase from 7.63 per cent at the same time last year, and significantly up from 6.98 per cent five years ago.
In monetary terms, this represents the highest amount saved per head in the summer since the survey started in 2005.
The findings show Brits saved an average of £104.84 a month, continuing a trend over the past three summers of steady savings rises. Overall, people are putting aside £23.48 a month more than they were ten years ago.
According to the survey, almost ten million Brits are more likely to save money in the next three months than previously, and 78 per cent will either maintain or increase their savings activity over the autumn.
Younger age groups are particularly committed to increasing their savings, with 48 per cent of 16-24s and 33 per cent of 25-34 year-olds believing they will save more in the coming three months, much higher rates than older age groups.
The need to save is prioritised irrespective of income, with 23 per cent of those taking home less than £500 per month saying they will save more than previously in the autumn period.
While savings levels have reached a summer high and Brits expect to save as much, if not more in the next quarter, 55 per cent feel they have enough money in savings to cope if an unfortunate financial emergency occurred. This is the same figure as a year ago, and up slightly from two summers ago (53 per cent).
“It’s encouraging to see that summer savings levels are at a record high, and we are encouraged that Britons think they will be more likely to save over the next quarter too,” said Jill Waters, retail director at NS&I.
“Regularly reviewing our savings behaviour and putting aside extra money each month – either for a rainy day or a big ticket purchase – is a good habit for us all to be in to. It is pleasing to see how many Britons are actually doing this and as we have seen over the past few summers, the numbers are either rising or remaining at a satisfactory level.
“By taking control of your finances, you can protect yourself should anything unfortunate happen, and have peace of mind that you have your emergency fund to dig in to, in order to help cover the costs of any unforeseen circumstances.”