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Fifth of Britons 'have no savings'

A study has found more than one in five Britons have no savings or investment, despite an overall increase in the number of people who are setting aside money.

Market analyst Mintel said 21% of people still have no savings to show, while 35% have set aside less than £500.

The number of active savers, however, has grown from 40% in August 2009 to 47%. Seven out of 10 people polled said they hope to save some cash in the next six months.

Of those surveyed, 36% have between £500 and £10,000 in savings and investments, while 12% have more than £50,000.

Mintel said nearly double the number of people had been putting their cash in standard deposits than in tax-free ISAs, suggesting they may not be getting the best return on their money.

The majority of people are saving for the long term, with 40% setting aside money for their retirement, while 39% are doing so to provide them with security and 33% are building up an emergency fund.

One in four people said they were depositing money for a specific purchase and 20% are doing so to fund their child's education.

Copyright © Press Association 2010

All articles are copyright The Press Association 2010. News articles provided by The Press Association for Family Investments. Whilst every care it taken to ensure accuracy of editorial content, Family Investments takes no responsibility for any errors or omissions. The views expressed in these articles are not necessarily those of Family Investments.

  

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Important Information: The contents of this website must not be interpreted as financial advice. You should not rely on the comments and views expressed within this site. Your own individual circumstances should always be considered. If you have any doubts regarding financial matters you should seek advice from a suitably qualified professional. See our Terms and Conditions for more information. Site last reviewed and updated 02/09/10.