People are “kidding themselves” about saving

People in Britain who say they do not save because of insufficient earnings probably would not save even with a higher income, new research has suggested.

Comparison site moneysupermarket.com found that over half of individuals responding to a survey said they could not put money aside because they did not earn enough.

However, in a separate study non-savers revealed that additional income is more likely to be spent on holidays, new clothes, nights out and home improvements.

Head of Banking at the organisation Kevin Mountford said: “Saving is not something that comes naturally to many people, it takes discipline and self sacrifice.”

The best way to judge how much money may be saved is to start implementing a strict budget and then evaluating where cost-cutting can be achieved, he added.

In recent news, a Scottish Widows report revealed that 47 per cent of women were adequately saving for a pension, compared to 59 per cent of their male counterparts.

By Francis Finch