UK savings ratio is VERY low

snowqueen555

http://www.telegraph.co.uk/finance/personalfinance/savings/8029954/Households-save-less-amid-pay-freezes-and-high-cost-of-living.html

Only 3.2% of earnings are saved

Can't be that low can it? Even 5.5% seems low

http://www.fairinvestment.co.uk/news/pensions-news-Pensioners-not-so-poor-after-all-thanks-to-%C2%A333000-in-savings-921.html

The average 18-24 year old has £5,525 in savings, those aged 25-34 have £8,632 and by the age of 49, the average Brit has £14,113 tucked away for a rainy day. By 50-55 people have around £21,000 saved up and by 56-60, this shoots up to £30,528.

I'm in the 18-24 bracket and I am noway near 5k

rictus123

Im a year in and like you im not rear £5k...remember alot of that is post grads and time served tradesmen etc so that will bring the average right up. By 24 i think £5k will be nothing in savings....Each to there own but im aiming for nearer £50k by that stage...

snowqueen555

I read your other thread, you must be earning good ££, always good to think about these things now, it will pay off later!

rictus123

The one i just started? Yep, well iv realised as your income increases so does your lifestyle...so you live withen yours means to your salary if you know what i mean. So if i never get that £1000 a month il never miss it...as the saying goes you cant miss what you have not had...thatl be my motto...

Paul_Herring

snowqueen555 wrote: »

http://www.telegraph.co.uk/finance/personalfinance/savings/8029954/Households-save-less-amid-pay-freezes-and-high-cost-of-living.html

Only 3.2% of earnings are saved

The Telegraph appears to have missed one of the other reasons.

antrobus

snowqueen555 wrote: »

Only 3.2% of earnings are saved

Hey don't knock it. It was down to less than in zero in 2007 by the time Gordon Brown had finished his life's work.

lisyloo

This is only part of the story.
There isn't much point saving at the moment becasue savings rates are so low that your money actually depreciates.

Many people are paying back mortgage, unsecured debt or investing.

A few don't have alternatives e.g. if your in your 90s you don't want long term investments, but many people do have alternatives.

snowqueen555

The first sentence of article Lisyloo...

The so-called savings ratio, which measures what proportion of their earnings Britons are putting aside as savings or to pay off debt, fell from 5.5 per cent to 3.2 per cent, the lowest level in seven quarters.

C_Mababejive

Why on earth would one save loads of money?? No..the new lesson learned is to get debt. Its cheaper and much more fun.

Loughton_Monkey

C_Mababejive wrote: »

Why on earth would one save loads of money?? No..the new lesson learned is to get debt. Its cheaper and much more fun.

Absolutely brilliant idea.

moneyfritteringexpert.com

'Why dip into your Offset Mortgage, when you can max out your Store Card at 27.9% APR.......

'How simply delaying your repayment by one day can give you luxury of another £50 debt.....

'Best boiler-room scams to get rid of your last £10K, so you can qualify for TOP benefits.....

'Overdrafts are fun. Share your best 'send round the bailiff' letters here....

'How I turned a miserable £20K savings account into a £3k overdraft in three weeks....