One In Three 'Unable To Save For The Future'
Some 15 million Britons - almost a third of the population - are living on a "financial precipice" with no money put aside for the future, a report has warned.
The tough economy and the need to help other family members struggling with high living costs means few are managing to put away anything in savings.
Some 31% of people are failing to save any cash at all, according to the Savings and Investment report by Scottish Widows.
And of the two-thirds of people who are managing to add to their nest eggs, some 32% said they had less than £1,000 put away - not even enough to pay someone's average mortgage and council tax costs for a month - the report said
One quarter of the 5,000 people surveyed who have families said they had given loans to their children.
Parents said that they had handed out loans averaging £15,000 to help their sons and daughters buy their first home or go to university.
A quarter of mums and dads said this had forced them to cut back on their own savings, while one in 12 said this had stopped them saving altogether.
Older generations are also feeling the strain, with grandparents lending £3,665 on average to their grandchildren, the report found.
Two-thirds of people said that a general lack of any spare cash is holding back their ability to save.
As well as rising living costs such as food, energy bills, rents and petrol making life harder for savers, rates on savings accounts have been plummeting in recent months, meaning they face an even tougher struggle to make any real returns.
Iain McGowan, head of savings and investments at Scottish Widows, said: "When we are faced with immediate financial commitments, such as mortgage payments and day-to-day living expenses, then it is absolutely necessary to give these pressing needs priority.
"However, taking a wholly short-term view of our finances will mean we are unprepared for the financial needs and challenges that lie ahead in the future."
what do you think?
Wish i had enough money to save lol uk economy and prices are a joke sign me up for communism
Cost of living goes up and up everyday. My wages don't. I will have to work until I drop. But I am lucky, I at least have a job. Not surprised by these findings, only going to get worse
SAVE? Save what, with the cost of living at the moment your lucky if youve got anything left at the end of the week.
How the hell can people save when the government are robbing us blind!....
Im thinkin id b beter of on the dole at this rate no savings means il havta keep on workin til i keel over cnt get a council house cause brits dnt get 1 here an half my wage goes on private rent
You could learn to spell correctly. That may get you a better job.
I want to enjoy what little money I have now.not be wheeled out in front of jeremy kyle every morning with a few quid in the bank
Malkie Man, please dont stoop that low!!!!!
I earn now what I was earning 20 years ago. Wish I had the money to save, to buy some new clothes and new shoes would be nice. If our government stopped giving our money away and invest it into the economy and pensions so people can retire at 65 with comfort. Opens up the job market, then close the borders. We need a government that is for the ordinary people. Anybody wanna vote for me?
Gordon Brown asked us to be prudent.... why? No point in saving these days, the Government jump on that. My advice from an elderly lady is spend and then throw yourself on the State, they cant take what you havent got!!!!
Windows Live User
Gillie. Yes we had to be prudent while he spent other peoples money like there was no tomorrow. The problem is tomorrow has arrived and it is the situation we find ourselves in today
I am a pensioner and worked for my state and private pension for many years. The government in their wisdom have decided not to increase our personal allowance hence I am paying more tax on my private pension that I worked for and paid tax on my earnings to do so. What is the point of saving money/taking out a private pension when we are taxed for doing so. No wonder the young people of today dont bother to save for their old age even if they could afford to with the cost of living. It is about time the government took a step back. Increasing fuel and living costs = inability to save for the future. Hence more reliance on the state to keep them in their old age = back to square one!!!
Ann. The concern is that we will eventually reach a point where we cannot rely on the state. Once the economy reaches a point where no one is prepared to lend to the UK any more then pensions, benefits and other desirable things will stop just as in Greece
Pensioner`s/ Worker`s did not wreck the economy the scamming Bankers and corrupt Politicians did all that on their own .It has been low pay long hours for the majority of British workers for the last 34 years while the Banker`s with Government`s approval pillaged our saving and pensions.
There's no point the cost of living soon it wont be worth it and retirement age will be 100 soon the state has to keep you if you have nothing there is NO POINT WORKING ANYMORE
That's a bit defeatist! It is a stinker, though.
I work full time but at the end of the month with the cost of living etc, etc I have nothing left to put in the pot
There is no point working these days its not like you get any thanks
Same - I haven't even got the pot!
I don't know where they get these figures from, but as with all statistics it probably doesn't show the true figure. The people I know and meet are in a majority when it comes to not being able to save for the future, they are fast approaching a situation where they cant find anymore cuts to their domestic budgets and will soon be paying out more than is coming in. These people are not spendthrifts or wastrels they are just living from hand to mouth and still seeing more pressure placed on their income. I can see no light at the end of the tunnel for people who just want have enough to live on. Still its reassuring to know along with those who have a more fortunate lifestyle, we are all in it together.
John. I agree with you and in the meantime well off politicians on both sides of the commons keep telling us they feel our pain. Yeah from a safe distance
Save! Ha ha ha. I haven't a bean saved and I used to earn less and live a far more frivolous lifestyle. With a higher wage and no extravagant treats, I'm somehow poorer now! Mortgage payment is decreasing by 300 quid next month, thank God, so I may be able to start putting something away. It'd be the first time in years.
Same here movvi, I used to be able to save a bit but now, even though I don't spend any more than in the past I am worse off. I have to decide whether I can go on holiday or use the money to pay for house repairs. Not good
WLU. Blow the lot of it. I have always believed anyone who dies with money in the bank is a failure. Spend it on yourself and enjoy it
Windows Live User
Dave off to my bedroom safe (Biscuit tin to keep mouse out) right now. See you in the pub later mate drinks on me lol Be their sharp the money wont last long !
When money is tight and living standards are being squeezed saving is a luxury many cannot afford. In any case why bother as the present system penalises those who do save. In the present returns are lousy and in the future have a bit of money put by and you fall foul of means testing, save nothing and it is handed to you on a plate
Windows Live User
Ahhh the dreaded means test. You save hard and pay into the system all your life, only to find a time arrives when it is your turn to hit bad times. The dreaded means test makes sure you get nothing but more worry as your old age stash slips away. Why did I pay into the system? Only to keep the lazy man next door is the answer. Can I save my savings? No. The system is an equaliser. It makes sure you have the same as the lazy man next door. My kids cannot benefit from my graft and savings,. No but the benefit system will benefit from your beneficial saving efforts
How can you save on minimum wages Cameron counts workers working two days as a full time job.
And 1% have 93% of the world's wealth and they want more, the rich are indulging in another one of their feeding frenzies, aided and abetted by the useless self-serving gobsmiths who are supposed to be representing us.
if our tax money was not sqandered on people like james robbins who works for the government and the bbc both paid by the tax payer life would be abir more fairer dave said he was going to get rid of them WHAT HAPPEND maybe we sould not pay our taxes ???
Whats the point in saving when interest rates are low? If you have any money spare its probably safer stuffed under your mattress - and its out of the hands of the people who caused this mess in the first place.