Biggest drop in savings for 40years

Graham_Devon

wotsthat wrote: »

That's why I'm dubious about assertions that poor people are dipping into their savings to cover the increasing costs of essentials.

Who said poor people?

It's more likely to be your average worker who has the savings to pull from in the first place.

Generali

wotsthat wrote: »

That's why I'm dubious about assertions that poor people are dipping into their savings to cover the increasing costs of essentials.

Most poor people don't have much in savings........because they're poor!

wotsthat

Graham_Devon wrote: »

Who said poor people?

It's more likely to be your average worker who has the savings to pull from in the first place.

Yes I was being ironic and the internet is not a good place for this fine art to be practiced.

We actually don't know who is removing their savings. As a % of total savings it's peanuts.

It's either chasing a better return or being spent in the economy - that's what a low interest rate is meant to incent. It's good news especially as we've agreed that it's not poor people having to take risk with their savings or having to spend them to survive.

Better a reduction in savings than more QE?

chucknorris

Generali wrote: »

Most poor people don't have much in savings........because they're poor!

Also I know a few couples that it would be hard to class them as poor, but they spend as quickly as they earn. I was really surprised a few years ago (when the banks were in trouble and you had to spread your savings around to keep under the FSA protected figure) and I mentioned the hassle of fragmenting your savings, but they responded by saying that they didn't have any savings. These are couples that both have top of the range cars and one of them flies business class (once or twice first class) when they go on holiday.

Scrootum

Generali wrote: »

Most poor people don't have much in savings........because they're poor!

Many older poorish people have savings. They were bought up to believe they had to support themselves in tougher times.

coastline

John Pollock, group executive director at insurer Legal & General which commissioned the study, said: “The reserve most people have is incredibly narrow. I found it shocking.”

http://uk.finance.yahoo.com/news/savings-dip-leaves-families-18-080018275.html

http://www.theguardian.com/money/2013/feb/25/millions-britons-without-future-savings

Savers surveyed by ING said that the main reason for declining savings was the need to pay for everyday living expenses. Others drew down their savings to pay for holidays or home improvements, or to pay down debt.

http://www.telegraph.co.uk/finance/personalfinance/savings/9873834/How-Britain-is-giving-up-on-saving.html