Saving money is undoubtedly an important aspect of sound money management for many people across the UK and yet many Brits seem to be experiencing a certain level of difficulty when it comes to putting our cash away for whatever reason.
The latest Lloyds Bank Savings Index found that although a number of economic improvements had helped add some much needed stability for UK savers, the actual amount of money being put away remains low.
The research found that half the UK population (50 per cent) have managed to save less than two months worth of their income, amounting to an average of less than £4,308.
Of that number, another 35 per cent had less than £2,154, or an average of one months’ income saved.
At the other end of the spectrum, just 16 per cent of population said the had over four months worth of income in savings, which amounts to an excess of £8,616, based on the average full time salary.
Savings still valued
However, despite the low numbers, the report did find that many people across the UK do understand the importance of saving their cash, with nearly nine in ten (87 per cent), stating it was important to have at least a minimal amount saved up in order to cope with any unexpected costs.
Another 50 per cent said they would need at least two months worth of income in order to protect themselves against any potential financial emergencies, with another 22 per cent claiming they would need four months worth or more.
Attitudes towards savings remain pretty similar to sentiments shown in previous quarters, with 86 per cent agreeing that it’s important to save regularly.
Lack of spare money
However, although many people have a good idea as to how much money they need in order to prevent any financial difficulties, there are a number of Brits that claim not to have enough spare cash to put towards saving.
Just under a third (32 per cent) said they could not save due a lack of spare cash, although this figure was still lower than that recorded last year.
Another 84 per cent of people said they would rather spend money on paying off debts before they started to save, with just under a quarter (24 per cent) stating they will save less in the next 12 months or stop saving altogether.
Philip Robinson, Lloyds Bank savings director, comments: “Although confidence in the economy is improving, one in three of us still have less than a months’ income in savings. People do recognise the importance of saving and if they are able to get in the habit of putting away small amounts each month, the rainy day savings pot will grow as their circumstances improve.”