Savings lowest since 1960

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The average person is spending 3%+ more than they are earning and higher interest rates are hitting saving, rather than spending.

Telegraph

"the amount people are putting away in savings, pensions and investments to their incomes, dropped to just 2.1pc in the first quarter of the year, according to the Office for National Statistics.

It indicates that as their incomes are eroded away by higher interest rates and tax costs, households are having to dip deep into their savings to sustain their expensive lifestyles.

Economists said the figures represent a stark warning for the UK consumer, who is struggling to keep afloat as the tax burden soars at the fastest rate in nine years and disposable incomes grow at the slowest rate in a quarter of a century.

Worryingly, when employer contributions to pension funds are removed, the actual savings rate is in the red, at a record low of MINUS 3.3pc, according to calculations by Bank of England experts."
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