UK Savings Week has been launched with the aim of getting people engaged with saving, whether they are already savers, have no savings but could save a little, or may be unable to save right now but may be able to when times improve.
New research from the BSA reveals that the average person has £17,356 tucked away in savings.
However, as always average figures conceal the gap between the ‘haves’ and the ‘have-nots’, with one in seven (13%) saying they have no savings at all.
And for those who have started to build a savings pot, over a third (36%) said that they are now relying on their savings to get them through the cost-of-living crisis and more than half (55%) have reduced the amount they used to save. More worryingly, over a third (35%) have stopped saving altogether as a result of the crisis.
Despite the financial pressures caused by the rising cost of living, almost three in four people (72%) said they could save an extra £10 a month.
Creating a regular habit is often the best way to start saving, even if the amount saved flexes depending on other expenses in the month. UK Savings week aims to encourage people to take time to think about savings, providing hints and tips on how to create a successful savings habit – and the pitfalls to avoid!
UK Savings Week also aims to encourage people to find the best deals for their savings, as there’s currently more than £260 billion1 in accounts paying no interest. This is not surprising as the research found that around one in four (23%) savers don’t check the interest rate paid before they open an account, with a third (33%) never comparing the rate on their savings to other accounts available.
Iona Bain, financial commentator and founder of Young Money, said: “Having a regular savings habit can provide a safety net when things go wrong. Even a small rainy-day pot to fall back on when an unexpected bill lands, can provide security and reduce worry in difficult times.
“But savings are not just for the unexpected bad stuff. A growing savings pot can help achieve future dreams and aspirations, whether that’s saving for a special occasion, a new car or a new home, or to cover a regular expense such as Christmas presents.
Andrew Gall, head of savings and economics at the BSA, added: “The midst of a cost-of-living crisis might not seem the best time to launch UK Savings Week, but it’s important that those who are able to build some savings get support to do this as effectively as possible.
“When, how and how much people save will be different for everyone. UK Savings Week aims to help individuals to save their own way, when they can, and to help them make the most of their savings.”
