Poor savings for 20 per cent of the UK population

Poor savings for 20 per cent of the UK population

Nearly 20 per cent of the UK’s population do not save any money, research from the Tax Incentivised Savings Association’s Savings and Investment Policy project group has found.

Although more than 33 per cent said they preferred simple savings products such as Isas, a significant proportion said they did not have enough free cash to enable them to save regularly.

Some 11 per cent of respondents to the Tisa Savings and Investment Policy study said they simply set money aside at home – under the mattress or in a money box.

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Tony Stenning, chairman of Tisa’s Savings and Investment Policy project and head of UK retail for fund manager BlackRock, said: “Many people know that they should be saving and investing, but it is simply not an option for some as their priority is to live day-to-day.

“However, it is essential that we work together to develop ways to rebuild confidence and trust in saving and investing. Essentially, we need to create a culture where it is as easy to save as it is to get into debt.”

Mr Stenning highlighted policies that meant both politicians and employers reduced the levels of income that people could expect in retirement.

This means people must save more just to maintain the same standard of living as their parents, while because of increasing longevity, their retirement pot will have to work much harder to support their longer lives.

The study also found that, of those who do save, almost 32 per cent of people are saving or investing £50 or less each month. The majority of those who do save (54 per cent) are depositing this money in a bank or building society, 34 per cent through an Isa, 12 per cent into a pension and 3 per cent through a company Save As You Earn Scheme.