Your money: Non-savers cite lack of spare money

More than a third (38%) of people don’t have enough money to save every month, according to research by Lloyds Bank.

Lloyds Bank’s latest survey of more than 3,500 people found that 24% will either stop saving or save less during the next 12 months.

The research found:

  • 34% of respondents have less than their monthly income saved
  • 26% said they save regularly through the year
  • 67% of savers have had to dip into their pot during the last 12 months

Andy Bickers, savings director at Lloyds Bank, said:

“Despite widespread news about the economy improving, 4 in 10 still aren’t saving each month. This shows there is still some way to go for confidence in the economy to filter down to the man on the street.”

Separate research conducted for the Post Office found that UK households’ savings potential has fallen by more than 10% over the last 4 years.

After total expenditure, UK households could potentially save an average of £3,781 each year – less than their equivalents in both Spain and Italy.

Henk van Hulle, head of savings at the Post Office, said: “While it’s great UK households feel more confident about their finances, it’s worrying that we’re seeing savings rates fall so soon after a recession.”

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