16th April 2014
More than one in 10 UK adults do not think it’s important to regularly save money for the future. New research* for alternative account provider thinkmoney reveals that 12.4% of people do not believe it’s important to put money aside regularly for a rainy day.
While the vast majority or 87.6% of respondents do see the value of saving, fewer than two-thirds or 62.8% of adults currently do so.
Nearly a quarter or 23.9% of people say they plan to save money each month, but then end up spending it. Meanwhile more than one in 10 (13.3%) reveal they never plan to put money aside – whether or not they think doing so is a good idea.
Of those who do not save cash regularly, the most popular reason for this is that they have no spare money to put aside, with 82.7% of respondents claiming this is currently the case. However, one in 10 (10.3%) admit they could probably cut back on their current outgoings in order to save more, but they always seem to end up spending it.
Across the country, Londoners are the most dedicated savers, with nearly three-quarters or 73.65% of respondents in the capital revealing they are currently saving for the future. In contrast, people living in Wales are the least likely to put money aside every month, with a little over half (51%) of people here making sure they do.
Young people are the least likely to say they aren’t saving because they do not have enough money to do so. Fewer than three-quarters (72.9%) of non-savers aged between 18 and 24 years old reveal they cannot afford to put cash aside – compared to 91.4% of 45 to 54 year olds who claim the same.
Ian Williams, spokesman for thinkmoney, says: “It is worrying that as many as one in 10 people don’t realise the importance of putting money aside to build up a savings pot. While there will always be some people who really can’t afford to save, for most of us the decision to save is more about deciding to forgo some spending.
“Rather than thinking of saving as something we could do if we have money left over, it is key people see it as a priority, just like paying their bills, rent or mortgage. thinkmoney customers can include standing orders to savings as part of their regular budgeting – so that not only do they know that all their bills will be paid each month, but also that they’ve set aside money to build a nest egg. It’s just another way we help people manage their money better.”
OnePoll questioned a nationally representative sample of 2,000 adults aged 18 and over between 4th April and 9th April 2014, of whom 500 were Scottish residents.