Despite the squeeze of the cost-of-living crisis, the majority of households are still prioritising saving for the future, new research from Nottingham Building Society has revealed.
Ahead of UK Savings Week, the research found that three quarters of households are still managing to put money away into savings, even if their savings goals have changed.
Despite the economic landscape, three in four (75%) households have still been saving – although not often as much as they were before.
47% of UK households are saving up to than 5% of their income today, compared to 35% of the same households this time last year.
The research also found that UK households’ savings goals have shifted over the past 12 months.
The proportion saving for an overseas holiday has decreased from 37% this time last year to 28% today, whilst the number of households saving for a new car has also decreased by 4 percentage points.
Meanwhile, 20% of UK households say they are now saving for their retirement, representing a 3% increase compared to this time last year.
Bradley Nicholls, chief savings officer at Nottingham Building Society, said: “Savings are crucial for building financial resilience and achieving life goals.
“This research shows that while people may be putting away less than they were last year and changing their savings goals to adapt to the volatile economic climate, the desire to save remains.
“These are challenging times as the cost of living continues to bite, and so the ability to consistently set aside savings is harder for many people. It’s reassuring though to see that saving still remains a priority for the majority.”
He added: “It’s important to remember the value and security that saving now can have in the long run and there are three things to remember.
“Firstly, think about putting away something regularly for the future even if it’s less than you were able to before.
“Secondly, look at the free resources that are out there to help you with financial planning. Finally, make sure you do your research and choose a savings account that works hard for you and your money!”
