![The state of UK saving habits [Infographic] | Shepherds Friendly](https://shepherdsfriendly.blob.core.windows.net/wp-media/2018/11/rawpixel-741658-unsplash_opt.jpg){kind=tracking}
We surveyed 2,000 adults in the UK about their savings habits and found that 1 in 6 adults don’t save. Having a healthy savings account is something everybody dreams of, whether it’s for a rainy day, helping fund your child through university or money saved for comfortable retirement. These dreams cannot become a reality without taking time to save in the first place.
Our survey highlighted that for those who do save in the UK, the majority aren’t saving for long-term goals. Instead they are prioritising for short-term goals such as saving for a holiday or to “do up” their home. Thus, they were not making the most of long-term saving accounts like investment ISAs that help to make their money go further, and are saving money in regular savings accounts instead.
The results showed that:
- 42% save money once a month
- 61% would last for a year or less without any income
- 32% don’t budget their savings
- 46% would use the internet for advice on how to save money
See how your saving habits compare to your fellow neighbours in your area. Could you improve your saving habits?
Embed our infographic using the code below:
Text Version: The state of UK saving habits
Should we be thinking more long-term?
We surveyed 2,000 adults in the UK about their savings habits to see how people are currently saving.
How is the UK saving for their future?
– 42% save money once a month
– 61% wouldn’t last without any income for more than 12 months
– 32% don’t budget their spending
– 46% would use the internet for advice on how to save money
Where do you stash your cash?
– 62% in a Savings Account
– 37% in Cash ISA
– 21% in a Jar
– 13% Investment ISA
– 18% Not sure
What are you saving for?
– 12% to buy a home
– 30% a holiday
– 9% to buy a car
– 16% for my retirement
– 16% to “do up” my home
– 3% a “high end” item
– 6% a new piece of technology”
– 17% other
– 31% nothing in particular
*Those surveyed could select more than one option.
How do you compare to your ‘neighbours’?
Scotland
Key finding: Most likely (%) region to save into a piggy bank or cash jar
North
Key finding: Most likely (54%) to last 6 months or less on their savings if out of work
Midlands
Key finding: Most likely (28%) in UK to visit a bank or advice on how to save
East
Key finding: Most likely (33%) in UK to not be saving for anything in particular
London
Key finding: Most likely (81%) in UK to not be saving for a child in the UK
South
Key finding: Most likely (17%) to have an investment ISA in the UK
Wales
Key finding: Most likely (68%) to budget their spending in the UK
Northern Ireland
Key finding: Least likely (%) in the UK to save
RESULT: The results suggest people are only looking at their short-term future.
Majority of the UK’s saving goals relate to short-term goals, such as holidays and home renovations, rather than long-term goals such as retirement sand saving for their children’s futures.
Why should you be thinking about long-term saving goals?
1. More potential for growth
Historically long-term savings plans, such as a Stocks and Shares ISA, produce higher returns than cash ISAs as they have more potential for growth. However, you should remember that past performance is not a guide to show an ISA will perform in the future and that your capital is at risk.
2. Helps you reach bigger goals
If you have save for your long-term future, you may be able to accumulate a bigger savings post that could find the lines of your retirement or the holiday home you’ve always dreamed of.
3. Long-term saving can benefit your family
78% of people aren’t saving for a child in their life but want to support them through university or contribute towards their wedding. Starting to save in a Junior ISA from just £10 a month, may accumulate to a large amount if you save each month for over 10 years.
Could you improve your savings?
There are a variety of ways you could improve your savings, such as learning how to budget, actively managing your savings and getting advice from a financial adviser.
** All figures, unless otherwise stated, are from YouGov Plc.**
