Fifth of British public are failing to save any money
Simon Read is Personal Finance Editor at The Independent. He edits the Saturday Your Money section and writes the Daily Money column and Wednesday’s Midweek Money section in i newspaper. He also writes for the news and business pages of the Independent and i newspaper and is a regular money commentator on TV station London Live. He has won numerous awards including Consumer Finance Journalist of the Year.
Monday 25 February 2013
One in five people have no savings, a report reveals today. It warns that millions are living on a financial precipice, struggling amid government cutbacks and inflationary pressures and at risk of being tipped into debt woes by just a small emergency.
Scottish Widows' annual Savings and Investment Report shows that almost 15 million people in the UK are not making any efforts to save for the future, while eight million have no savings at all. Even among those that do save, a third have less than £1,000, which is smaller than the average monthly cost of meeting mortgage and council tax payments.
And with one in five most worried about job security in the short-term, more jobs lost could leave people with a financial shock from which they are unable to recover.
Iain McGowan, savings expert at Scottish Widows, said: "When people are faced with immediate financial commitments, such as mortgage payments and day-to-day living expenses, they are forced to take a short-term view of their finances. It is absolutely necessary to give those pressing needs priority, but it means millions are unprepared for the financial needs and challenges that lie ahead."
The report suggests that more people than ever are being forced to turn to their families for financial help. A quarter of parents say they have lent a "substantial amount" to children, often simply to help them meet daily living expenses. Average parental loans now stand at £15,000 – an 11 per cent increase over last year's figures.
Meanwhile grandparents have lent £3,665 on average to grandchildren.
Some 6 per cent of people admitted lending cash to parents with an average amount of £4,371 exchanging hands. Also 9 per cent of people have lent an average of £3,485 to a sibling.
- 1 Rules on 5p plastic bags likely to lead to arguments at the check-out
- 2 Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
Rules on 5p plastic bags likely to lead to arguments at the check-out
Watch the Supermoon live: How to see the brightest Moon of the year tonight
Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Turkey duped the US, and Isis reaps rewards
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...