Britons saving less this winter, survey suggests
Last Updated: Friday, December 12, 2008 | 11:04 AM ET
The Associated Press
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Britons have been putting away less savings from their paycheques every autumn since 2005, and nearly half plan to save even less this winter, according to a survey published Friday by a British savings organization backed by the country's treasury.
The National Savings and Investments' quarterly savings survey revealed that Britons saved an average of 6.4 per cent of their income — or the equivalent of $161.83 Cdn — during the September to November quarter this year.
In the same quarter last year, they saved an average of 6.8 per cent of their incomes, or $169.01. In autumn 2005, Britons' saved an average of 7.2 per cent of their incomes.
By comparison, Statistics Canada found the proportion of households spending more than they earned increased to 47 per cent in 2005 from 39 per cent in 1982.
The British survey, which interviewed 3,045 adults between Sept. 6 and Nov. 2, showed the amount Britons are saving is likely to fall even lower in the coming months as the economic downturn squeezes household budgets.
Of those surveyed, 45 per cent said they would probably save less this winter than they did in the autumn, compared to just 18 per cent who said they were likely to save more.
The survey said Britons widely view their lack of savings as a problem, with a third of those interviewed concerned that they would not have enough money to cope in an emergency.
"Even those with good savings habits are feeling more of a pinch in the current economic climate," National Savings and Investments said in its report accompanying the survey results.
However, as Britons are saving less, they are also borrowing less — an indication that many people may be paying for their living expenses upfront as the cost of unsecured loans and mortgages increase as a result of the credit crunch.
Earlier this month, the Bank of England published figures showing that net lending to individuals grew by $2.41 billion Cdn in October — just a third of the previous six-month average of $6.67 billion.
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