- Over half (56%) of the nation believe they are currently not saving enough
- Almost two fifths (37%) of people only save if they have money left at the end of the month
- The younger generation starts saving at 19 years old, compared to those over 65 who didn’t start saving until 35
The latest research from Aldermore’s 2017 Annual Savings Tracker reveals that over half (56%) of the nation believes they are currently not saving enough. The nation’s inconsistent savings habit may be one of the reasons for these concerns as almost two fifths (37%) only save if they have money left over the end of the month, and nearly a fifth (18%) save a different amount each month.
Worryingly, the recommended habit of putting aside a regular amount each month is adopted by less than a third (29%). The research also reveals that over one in 10 (13%) only save when they receive the additional income from a bonus, and nearly a quarter (24%) of 18-24 years olds only save when they remember to.
The financial pressures of wages not increasing in line with the cost of living is having an impact as nearly seven in ten (69%) of non-savers cite the cost of necessary outgoings as the main reason why they do not contribute to their savings pot.
Despite the financial pressures many of the younger generation are feeling, such as student debt and low wage growth, the research reveals that they are making the important decision to adopt a savings habit from a much younger age, often starting to save from the age of 19. Those currently aged 65 and over didn’t start saving until they were at least 35. However, despite starting to save earlier than their older counterparts, nearly three quarters (74%) of 18-24 year olds feel like they are not adding enough to their pot.
Over three fifths (63%) of Londoners are concerned about the amount they are saving, with the average person living in the capital putting away on average £2,990 annually. This compares to under a half (47%) of those based in Yorkshire and the Humber, and nearly a half (49%) in the South West. These regions save on average £1,684 and £1,795 a year, respectively.
Commenting on the study, Ewan Edwards, Head of Propositions - Savings, Aldermore says: “Our Savings Tracker reveals that the majority of people (56%) believe they are not saving enough and a significant proportion are not making regular contributions towards their savings pot. The findings also show over one in ten (13%) rely on a bonus when they want to add to their savings. Instead, more people need to set aside a regular amount at the beginning of each month for their savings, making this a lifestyle choice and a consistent habit.
“It is encouraging to see an attitudinal shift from 18-24 year olds when it comes to adopting the savings habit, with this generation starting to save from a younger age. This is positive news, but this age group still believes they are not saving enough and this echoes across the UK. I would like to encourage everyone to make even slight changes to their savings habits, by saving even a small amount regularly and by shopping around to get the best rate as this can make a surprisingly positive difference in the long term.”
Aldermore recommends the following savings tips:
- Setting aside a regular payment to your savings account at the start of every month;
- Utilising the personal ISA limit, to make your savings work even harder;
- Setting a short and long term savings goal to work towards;
- Always track your spending and monitor budgets;
- Shopping around to find the best accounts on offer – there are still a number of good accounts on the market despite the low interest rate environment
Notes to editors
4,005 online interviews with UK adults (aged 18+) were conducted by Opinium Research from 19 to 26 May 2017
For further information, journalists can contact:
Rachael Snelling, Aldermore
Phone: 0208 1853 102
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For further information about Aldermore, please review our Notes to Editors page