Households able to save drop by 400,000
by Gill Montia
Story link: Households able to save drop by 400,000
The latest MoneyMood Survey from Legal & General suggests that around eight million UK households (41%) can afford to save something each month, although the figure is down by 400,000 on an annual basis.
In addition, savers across the UK are putting away less each month at an average £71, compared with £93 in January, and only one in five households with a savings habit intends to add to their cash pile in the months ahead.
Again, the proportion is slightly down on the same period last year when 25% of households said they expected to add to their savings.
On a regional basis, homes in London, the South East, the South West, East Anglia and the East Midlands have all seen a significant drop in the level of monthly saving since the start of the year.
Those in Wales, the West Midlands and Northern parts of the UK appear to be saving around the same as a year ago, and slightly more on average than they were in January.
The insurer’s research identifies the top five reasons for saving as follows:
Saving for a rainy day 65% – (up slightly on last year’s 62%)
Saving for a holiday 53% (down slightly versus 57% in 2011)
Savings for home improvements or decorating 39% (35% in 2011)
Saving in case I lose my job 29% (27% in 2011)
Saving for a pension 29% (36% in 2011)