With wage freezes, rising prices and Government cuts which are yet to fully bite, Brits are becoming
more pessimistic about the amount of their cash they can put away in a savings account. This is the
main finding of a new survey by National Savings and Investments (NSI) which also shows that men
and women have different priorities for saving.
Consumers preferring to repay debt than saving
The NSI survey found that 27 per cent of Brits believe they will be less likely to save any money over
the next three months. These figures come after Bank of England data showed that people paid off
mortgage debt at the end of 2010 at the fastest rate since records began in 1970.
With interest rates being low on many accounts, many Brits prefer to use any excess cash they do
have to pay off expensive debt such as credit cards, loans or mortgages.
Gender divide between savings priorities
The NSI survey also found that there was a difference in savings priorities between men and women.
Whilst 41 per cent of women are putting money into savings accounts to pay for short-term goals
(holidays, purchases) 27 per cent of men are saving up for long-term goals such as an emergency
fund or financial safety net.
Tim Mack, savings spokesman for NSI said: “It is interesting to see the difference in saving goals
between men and women.
“While it is good to see that women are saving up for things, rather than relying on credit or risking
going into their overdraft, a large number of women are prioritising short-term goals such as
holidays.”
Mr Mack advised savers to put aside at least three months worth of wages in an easy access savings
account, as an ‘emergency fund’.
