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UK household savings lowest in 40 years say ONS

stueyhants
stueyhants Posts: 589 Forumite
Part of the Furniture 500 Posts
in Debate House Prices & the Economy
BBC

People in the UK are saving less than at any time in the past 40 years, according to the Office for National Statistics (ONS).
The household saving ratio in the UK in 2008 was 1.7% of total resources, the lowest recorded since 1970, and well below the 7.6% average for that period.

I thought people saved more in times of reccession and hardship? I do hope people are using their savings wisely to pay down debt rather than fuel a consumption binge.
«1

Comments

  • Conrad
    Conrad Posts: 33,137 Forumite
    10,000 Posts Combo Breaker
    Not this ole chesnut again!

    For the billionth time, Brits invest in bricks, Germans save.
  • lemonjelly
    lemonjelly Posts: 8,014 Forumite
    1,000 Posts Combo Breaker Mortgage-free Glee!
    There are some who would argue with the pathetic savings rates on offer, is there any real point stashing it in a bank?

    ISA rates this year, anything above 3% is being classed as a catch!:eek:

    Plus, faith in banks has slipped a little I suppose...
    It's getting harder & harder to keep the government in the manner to which they have become accustomed.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    edited 8 April 2010 at 11:18AM
    Overpaying mortgages perhaps also.

    £4bn was overpaid last 1/4. (well Q4 09)

    Interestingly they have been overpaying now for 7Q.

    How long have savings been dropping?
    Would be interesting to see if there is a correlation between HEW (and negative HEW) and savings
  • Charterhouse
    Charterhouse Posts: 296 Forumite
    2009 figures will be massively higher, the savings rate was more like 10% for much of 2009. Also, mortgage overpayments count as savings for the purposes of the stats, fyi.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    Charterhouse wrote: »
    Also, mortgage overpayments count as savings for the purposes of the stats, fyi.

    I cant see that on the stats, I can see mortgage payments but they are shown as lowering disposable income, not as increasing savings.

    I am not saying you are wrong, I just cant see any reference to it in the article or on the ONS.
  • Charterhouse
    Charterhouse Posts: 296 Forumite
    hmm, maybe ONS stats are different to BoE ones in that respect. It would certainly explain why their numbers are so low...
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    stueyhants wrote: »
    I thought people saved more in times of reccession and hardship? I do hope people are using their savings wisely to pay down debt rather than fuel a consumption binge.

    How? Hard to see people saving much out of £60 jobseekers allowance.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Charterhouse wrote: »
    2009 figures will be massively higher, the savings rate was more like 10% for much of 2009. Also, mortgage overpayments count as savings for the purposes of the stats, fyi.

    2009 is 7%

    http://www.statistics.gov.uk/STATBASE/tsdataset.asp?vlnk=221


    Table follows the house price boom and fall in savings ratio.
  • tomterm8
    tomterm8 Posts: 5,892 Forumite
    Part of the Furniture Combo Breaker
    stueyhants wrote: »
    BBC

    Storys out of date. Data released on 30 march shows that In q4 of 09, the savings rate was 7% - roughly historical average.
    “The ideas of debtor and creditor as to what constitutes a good time never coincide.”
    ― P.G. Wodehouse, Love Among the Chickens
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    tomterm8 wrote: »
    Storys out of date. Data released on 30 march shows that In q4 of 09, the savings rate was 7% - roughly historical average.

    Good spot, why did they do a story on 2008 today?
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