We surveyed 2,000 adults in the UK about their savings habits and found that 1 in 6 adults don’t save. Having a healthy savings account is something everybody dreams of, whether it’s for a rainy day, helping fund your child through university or money saved for comfortable retirement. These dreams cannot become a reality without taking time to save in the first place.
Our survey highlighted that for those who do save in the UK, the majority aren’t saving for long-term goals. Instead they are prioritising for short-term goals such as saving for a holiday or to “do up” their home. Thus, they were not making the most of long-term saving accounts like investment ISAs that help to make their money go further, and are saving money in regular savings accounts instead.
The results showed that:
- 42% save money once a month
- 61% would last for a year or less without any income
- 32% don’t budget their savings
- 46% would use the internet for advice on how to save money
See how your saving habits compare to your fellow neighbours in your area. Could you improve your saving habits?
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Text Version: The state of UK saving habits
Should we be thinking more long-term?
We surveyed 2,000 adults in the UK about their savings habits to see how people are currently saving.
How is the UK saving for their future?
– 42% save money once a month
– 61% wouldn’t last without any income for more than 12 months
– 32% don’t budget their spending
– 46% would use the internet for advice on how to save money
Where do you stash your cash?
– 62% in a Savings Account
– 37% in Cash ISA
– 21% in a Jar
– 13% Investment ISA
– 18% Not sure
What are you saving for?
– 12% to buy a home
– 30% a holiday
– 9% to buy a car
– 16% for my retirement
– 16% to “do up” my home
– 3% a “high end” item
– 6% a new piece of technology”
– 17% other
– 31% nothing in particular
*Those surveyed could select more than one option.
How do you compare to your ‘neighbours’?
Key finding: Most likely (%) region to save into a piggy bank or cash jar
Key finding: Most likely (54%) to last 6 months or less on their savings if out of work
Key finding: Most likely (28%) in UK to visit a bank or advice on how to save
Key finding: Most likely (33%) in UK to not be saving for anything in particular
Key finding: Most likely (81%) in UK to not be saving for a child in the UK
Key finding: Most likely (17%) to have an investment ISA in the UK
Key finding: Most likely (68%) to budget their spending in the UK
Key finding: Least likely (%) in the UK to save
RESULT: The results suggest people are only looking at their short-term future.
Majority of the UK’s saving goals relate to short-term goals, such as holidays and home renovations, rather than long-term goals such as retirement sand saving for their children’s futures.
Why should you be thinking about long-term saving goals?
1. More potential for growth
Historically long-term savings plans, such as a Stocks and Shares ISA, produce higher returns than cash ISAs as they have more potential for growth. However, you should remember that past performance is not a guide to show an ISA will perform in the future and that your capital is at risk.
2. Helps you reach bigger goals
If you have save for your long-term future, you may be able to accumulate a bigger savings post that could find the lines of your retirement or the holiday home you’ve always dreamed of.
3. Long-term saving can benefit your family
78% of people aren’t saving for a child in their life but want to support them through university or contribute towards their wedding. Starting to save in a Junior ISA from just £10 a month, may accumulate to a large amount if you save each month for over 10 years.
Could you improve your savings?
There are a variety of ways you could improve your savings, such as learning how to budget, actively managing your savings and getting advice from a financial adviser.
** All figures, unless otherwise stated, are from YouGov Plc.**