UK adults are missing out on saving

Changes announced recently in the Budget mean that Brits have more savings options than ever, but new research shows that almost a quarter of UK adult…

Changes announced recently in the Budget mean that Brits have more savings options than ever, but new research shows that almost a quarter of UK adults aren't taking advantage of this.

A study conducted by Santandar has revealed that 24 per cent of UK adults either have "no idea" where to put their savings or feel it makes no difference where they put them.

This means that up to 12 million Brits could be missing out on the benefits of long term saving. In addition to this, ten per cent state that knowing where the best place is to save is irrelevant, as they don't have any money to put away.

The average Brit saves just over £120 every month – around a quarter of their disposable income. However, 26 per cent wish that they were able to save more regularly.

Almost one in five UK adults admit that in an average month they don't save any of their salary, while 23 per cent are putting back less than ten per cent.

Although 49 per cent of people believe that they need to earn more money in order to help them to save, 22 per cent admit that having better discipline and commitment to saving would be the most helpful factor.

Helen Bierton, head of savings at Santander, said: "While many people do have a strong understanding of savings, our study shows that there are still many more that miss out on the benefits of saving. Meeting the cost of everyday living can be a challenge, so the prospect of setting money aside at the same time can be daunting."

Worryingly, 61 per cent of adults don't realise how much they're spending and are shocked to see their bank balances – and eight per cent of people admit that this is a regular occurrence.

In order to fight the urge to overspend, 36 per cent of people try to avoid shops altogether, 32 per cent attempt to cut back on socialising and 24 per cent reduce their leisure activities. In addition, 14 per cent of people have tried the trick of freezing cards inside a block of ice, 19 per cent have tried cancelling their cards and 32 per cent give themselves a weekly cash allowance.

"Saving regularly and building a savings habit is hugely beneficial in the long term. It’s never too late to start saving – even if it’s just a small amount each month," Ms Bierton said.

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