Individuals ‘saving more’ to avoid debt problems

People appear to be saving more money in an attempt to stave off debt concerns, newly-released figures have suggested.

A Bank of England report revealed families are currently putting away more cash than at any other point in the last 20 years.

The study showed households in Britain placed £24 billion into deposit accounts last year, as well as taking out £20 billion in new loans.

Such a rate is the first time since 1988 that savings have exceeded new borrowing, the analysis found.

Director of ARK Financial Planning Phil Perry commented: “I think people in general are being made aware that there is much more to saving than just sticking it in a bank or building society.”

The Centre for Policy Studies recently issued a report that made extensive proposals to simplify the pensions and savings regime, including setting an annual contributions limit of £45,000 a year for all tax-incentivised savings.

By Joe Shervin