Savings levels improve

NS&I’s latest Quarterly Savings Survey shows that there has been a turnaround in savings levels since last quarter, however, there is still some way to go before they return to the levels seen in Winter 2011/12.

Britons are now saving 7.17% of their income each month, £90 in real terms, up from 7.08% in the previous quarter when savings reached their lowest level in over a year.

It is women and those in their late twenties and early thirties who are driving this uplift in savings.

Twenty and thirty-something savers (25-34 year-olds) are saving significantly more than the national average, putting away 8% of their income each month. This means £103 in real terms, and is a rise from 7.24% in the previous quarter.

Women are also leading the way when it comes to setting aside savings each month. As a percentage of income, women are saving 7.65% of their monthly earnings compared to 6.82% for men. Women are putting away more now than in the previous quarter (7.36%) as well as more than this time last year (7.51%).

NS&I’s findings suggest that goals are the key driving factor for the success of younger savers. 45% of 25-34 year-old savers are using goals to motivate themselves to put money away each month, compared to just over a quarter (27%) of British savers.

Female savers aged 25-34 years are proving themselves to be the best goal setters, with half (50%) using this savings strategy compared to two fifths (41%) of male savers the same age.

John Prout, NS&I Retail Customer Director, said: “It is encouraging to see this improvement in savings over recent months, and it’s particularly good to see such motivation from younger people.

"Setting goals is an effective way to get into a regular savings habit. Not only do they encourage people to stay motivated to save, they provide a real sense of achievement once a goal has been reached.

“While there are good signs that savings may be on the way up, there is still a long way to go.

"One easy way of staying on top of your savings goals is to manage your money online. This way you can keep abreast of your finances at a time and place that’s convenient for you.”