Almost 40 per cent of people cannot save, despite the economic upturn, due to a lack of spare money and around a quarter plan to either save less or stop saving altogether over the next 12 months, data reveals.
According to the latest Lloyds’ bank savings index, 34 per cent of 3,510 respondents said they have less than the equivalent of one month’s income put aside.
For those aged 35 to 44 this rises to 40 per cent, while around 21 per cent in the over 65 age group said they had less than one month’s income saved.
The number of people who have been able to save remains stable from previous quarters, with 26 per cent stating they are able to save regularly throughout the year, the research, conducted by TNS Financial Services, showed.
Attitudes towards savings also remain similar to previous quarters, with 86 per cent agreeing that it’s important to have a minimum amount of savings to protect against unexpected costs or changes in circumstance. Nonetheless, only 52 per cent of consumers feel they have enough to cover unexpected outgoings.
Andy Bickers, savings director at Lloyds Bank, said: “Despite widespread news about the economy improving, four in 10 still aren’t saving each month. This shows there is still some way to go for confidence in the economy to filter down to the man on the street.
“Attitudes to saving are still positive though, and if people are able to get in the habit of just putting away a small amount each month, this can be increased as circumstances improve.”
