Growing disparity in savings habits between UK regions

POSTED: 28th December 2019
IN: Newsroom
  • North/South divide in savings as individuals in London save £3,962 each year compared to just £1,400 on average in the North East
  • Savers are putting away a larger proportion of income this year than last year in ten out of the twelve regions, only decreasing in Northern Ireland and the East Midlands
  • Overall in the UK, individuals are saving an increasing percentage of their average annual income from 7.4% in 2018 to 8.1% in 2019

New research from Aldermore, the specialist bank, reveals there is a growing disparity in individual savings habits between regions in the UK. The difference in the proportion of annual income individuals save, a measure known as the savings ratio, has widened between UK regions, with a growing North/South divide being seen.

In 2019, savers in London set aside the largest amount in the UK, an average of £3,962 annually or 11% of their annual income, up from £3,055 in 2018 despite a decrease in their reported average annual income. This was followed by savers in the South West and East of England that on average put away 9% of their income, an increase from 7% in 2018. By contrast, average savers in the North East, saved just £1,400 each year (6.7% of their annual income), slightly over a third of what Londoners saved.

There is an increased focus on saving across the UK, with nine out of the twelve regions increasing the amount they are putting away in 2019 compared to 2018. Only people in the East Midlands and Northern Ireland decreased their average savings year-on-year, whereas in the North East the amount remained unchanged despite a drop in average income in the region. 

The disparity in savings habits across the UK also has an impact on feelings of financial stability. Half of Londoners feel like they are saving enough to ensure a stable financial future. This compares to just 36% of individuals in the East Midlands and 37% of individuals in Yorkshire who feel they are saving enough for their financial future.

Ewan Edwards, Head of Savings, Aldermore says: “It is encouraging to see people are increasingly focused on getting into the positive habit of saving. Making little changes to spending and saving routines can be very rewarding in helping realise people’s short and long term money goals.   

“The UK has many regional economic differences, which can affect people’s ability to save, but it is concerning to see such a gap between different areas. The data shows a positive correlation between saving for the future and a feeling of financial stability so prioritising savings is crucial in helping people feel they have control and security over their finances.”

 

2019

 

2018

 

2017

 

Income

Savings

Ratio

 

Income

Savings

Ratio

 

Income

Savings

Ratio

London

£35,994

£3,962

11%

 

£40,021

£3,055

7%

 

£30,734

£2,990

10%

South West

£21,563

£1,892

9%

 

£21,610

£1,538

7%

 

£19,884

£1,795

9%

East of England

£22,050

£1,921

9%

 

£19,934

£1,466

7%

 

£19,661

£1,506

8%

Wales

£21,823

£1,990

9%

 

£20,989

£1,874

9%

 

£18,865

£1,429

8%

Yorkshire & the Humber

£21,651

£1,771

8%

 

£21,514

£1,736

8%

 

£21,210

£1,684

8%

South East

£26,363

£2,183

8%

 

£26,365

£1,901

7%

 

£23,028

£1,740

8%

Scotland

£21,751

£1,690

8%

 

£20,866

£1,342

6%

 

£20,857

£1,557

7%

North West

£21,809

£1,757

8%

 

£23,503

£1,412

6%

 

£20,395

£1,623

8%

East Midlands

£19,667

£1,413

7%

 

£21,257

£1,921

9%

 

£19,772

£1,592

8%

Northern Ireland

£22,144

£1,583

7%

 

£24,241

£1,974

8%

 

£18,282

£1,504

8%

North East

£20,892

£1,400

7%

 

£22,412

£1,409

6%

 

£20,548

£1,228

7%

West Midlands

£22,736

£1,511

7%

 

£21,304

£1,333

6%

 

£19,706

£2,008

10%

Average

£24,164

£2,061

9%

 

£24,732

£1,798

7%

 

£21,892

£1,832

8%

 

ENDS

1The figures are sourced from a nationally representative survey conducted by Opinium Research with a sample of 4,012 online interviews with UK adults in August 2019

For further information, journalists can contact:                                                    

Gerard Swinley, Aldermore Bank
Phone:            +44(0)20 8185 3143
Mobile:            07799 132424
Email:             gerard.swinley@aldermore.co.uk
Twitter:          @aldermorenews

Notes To Editors

For further information about Aldermore, please review our Notes to Editors page. 

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