Where have you put your share of £140 billion "excess savings"?

Zorillo

It's sitting in a savings account, self-insuring against future redundancy. If the immediate threat passes, it will be used as future LISA /Pension contributions.

kuratowski

Echoing what others have said, I started by filling up the ISA and have now dipped my toes into a GIA.

However, I'm very conscious of how many people there are who are worse off, not better, following the past 12 months.  Averages don't tell the full story.

Zanderman

Hmm, no 5k savings here,

But our (2 person) household income did drop by about 5k because we weren't eligible for any of the government's covid hand-out schemes (we're part of the 3 million #excluded, in our case not actually employed at the start so no furlough and, in recent years, self-employment bringing in less than 50% so no SEISS, and had less SE work available in the lockdowns).

So down by 5k and now told we should have been able to save an average of 5k each.  Thanks!  Does that make us 15k down? 

Not grumbling (have got over that, just sad now) but do think it's worth stressing that a lot of people couldn't save as they lost money.

Rich2808

Pre pandemic around 40% of people in the UK apparently had less than £100 in savings - more than 50% in Scotland, Wales, NI and several English regions.

https://www.bbc.co.uk/news/business-37504449

In reality while the average saving is £5000 I expect the middle class homeworking types who spend all day on teams and zoom have probably saved considerably more (e.g. no commuting costs and lunch at home than at an expensive sandwich shop in the City) than those actually still working outside their homes (e.g. nurses, supermarket staff, bus drivers etc) or those who have had their businesses closed who are probably up to their eyeballs in extra debt!

So for millions its minus - and for many its probably tens of thousands.

Not sure what my saving is - I didn't count it! But then I saved pre pandemic cos I am prudent. Perhaps if more people had saved for a rainy day we wouldn't have needed to spend £400 billion on bailout schemes - a debt which will take generations to pay off - to keep them going.

MaxiRobriguez

Anyone who commutes into London on the trains with an annual season has probably saved nearer £10k just by that. Chuck in not buying lunch out, inability to have a holiday etc then yes I suspect there are some who have saved nearer £20k rather than £5k.

_theinsider

Into various savings vehicles (S&S ISA, regular saver, Premium Bonds). This was mostly only ever temporary saving as a lot will be withdrawn and pumped back into the economy over the coming months through local trades doing various bits of work on our house plus a car purchase now retail has opened up again.

It will be interesting if some/all of this money is retained in savings generally or does get spent as life opens up.

Albermarle

In reality while the average saving is £5000 I expect the middle class homeworking types who spend all day on teams and zoom have probably saved considerably more (e.g. no commuting costs and lunch at home than at an expensive sandwich shop in the City) 

Not every 'middle class homeworking type' previously commuted to The City . There is middle class  life outside London as well 

For sure though the lockdowns have been a lot kinder to some than others and has probably increased inequality .

Albermarle

MaxiRobriguez said:

Anyone who commutes into London on the trains with an annual season has probably saved nearer £10k just by that. Chuck in not buying lunch out, inability to have a holiday etc then yes I suspect there are some who have saved nearer £20k rather than £5k.

Part of my job is /was travelling around UK / Europe . All expenses paid of course, so the lockdown has actually cost me money as no free dinners /beer/wine/lunch/snacks  etc .   

Although I have saved money due to lack of holidays and just generally on lack of spending .

Nebulous2

My life has changed so much over the last year that it is hard to keep tabs. Expenditure is definitely down, but after an expensive year the year before it was always planned to be. 

Oddly I find myself with more actual cash than ever before. Moving home, clearing our loft, rationalising my bikes in a time when bikes and spares are in short supply has seen me sell quite a lot of stuff. Mainly low cost items £50-150. Any time I've sold something substantial for cash before it has gone straight to the bank. Smaller ticket items might have paid a takeaway. 

Nowadays takeaways all prefer cards, it seemed pointless taking it to the bank as it accrues so little, so we have been squirreling away notes. I'm waiting an elusive tradesman doing some work on my roof, and have an idea I might pay him in folding stuff when he does arrive in the hopes that would incentivise him to be quicker next time, but apart from that there are no plans for it. 

ratechaser

MaxiRobriguez said:

Anyone who commutes into London on the trains with an annual season has probably saved nearer £10k just by that. Chuck in not buying lunch out, inability to have a holiday etc then yes I suspect there are some who have saved nearer £20k rather than £5k.

£10k for a season ticket is a pretty grim sounding commute! Mine was about £4k and was still over an hour each way.

But as you say, could easily double that with the lack of coffees/lunches bought in the city (and lack of meals out generally) double it again by adding in Mrs RC (a fellow commuter) and then double it again with all the holidays missed last year. 

It's actually quite easy to get a ballpark view because my Amex cashback for the last 12 months is a fraction of what it was the prior year - pretty much all our spending goes via the credit card and it's probably £35k lighter in usage over the last year.

As for the 'what we did with it' - yes, home improvements, ISAs, more cash buffering to pay for university fees, and using the last remaining bits of our prior years pension carryover. It's not exactly exciting, but it's further cemented our early retirement capability, where hopefully the world is a more normal place again...