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Press release

NS&I’S QUARTERLY SAVINGS SURVEY: WINTER 2005/06

07 March 2006

Hardcore non-savers refuse to budge but regular savers stay on track

Whilst 55% of the British population are saving regularly, a distinct hardcore group of people who find regular saving unattainable or unattractive has emerged over the last nine months, according to the latest NS&I Quarterly Savings Survey.

Almost half of the British population are not saving regularly and the number has plateaued at 45% for the past three quarters, after rising slightly from winter last year (44%).  At the same time, two in five (41%) have no savings goals, suggesting that the hardcore non-savers are not committed to saving regularly because they do not have any clear savings objectives and lack the motivation to save.

For those who did save, however, winter 2005/06 was still a relatively strong savings season.  Although Britain as a whole saved less over the winter after a record-breaking autumn quarter in 2005, the total amount saved during winter was the second highest recorded since the survey began in September 2004, at 6.90% of income saved, matching winter 2004/05.

	Winter 2004/05	Spring 2005	Summer 2005	Autumn 2005	Winter 2005/06
Number of regular savers	56%	48%	55%	55%	55%
Number of non-savers	44%	52%	45%	45%	45%
Percentage of monthly income saved	6.90%	5.82%	6.64%	7.16%	6.90%

 

Dax Harkins, senior savings strategist at NS&I commented: “The positive savings attitude of more than half of the British population is really encouraging, but we are concerned about the emerging group of hardcore non-savers. Despite growing interest in financial matters over the year, our research highlights a continuing trend that almost half the British population are not saving regularly.

“This is worrying and appears to correspond with the large number of people who say they do not have anything to save for. The financial services industry needs to step up its efforts on financial education and impress upon these hardcore non-savers the importance of saving regularly and cultivating healthy financial habits.  Also, it has to look at ways to make savings easier for people.” 

The research also shows one in 10 Brits (12%) are more interested in living for the moment rather than cultivating good long-term savings habits. A third (31%) said insufficient income was the reason for not putting aside more money each month, while almost a quarter (22%) blamed heavy financial demands.

People who find regular savings difficult can start by deciding what they want to save for and setting clear savings goals for themselves. Saving should get easier once people can appreciate the tangible benefits of saving and take proactive step towards achieving their goals.

Savings tips

Popular goals among British savers include saving to purchase a property, repay a mortgage or carry out home improvements (15%). (See table in Notes to Editors)

The NS&I Winter Savings Survey, covering the months of December, January and February, is the sixth issued since the Survey was launched in December 2004, and provides a detailed examination of British consumers’ savings patterns during the quarter as well as their likely savings patterns over the next three months and in the year ahead.

Key Highlights:

For further information on the statistics supplied in this release or for a regional trend breakdown, please contact the media team as outlined below.

ENDS

Notes to Editors

The NS&I Quarterly Savings Survey:

1. Since September 2004, National Savings and Investments (NS&I) has carried out a Quarterly Savings Survey, examining savings patterns and predictions to provide a comprehensive analysis of the Great Britain Savings market.

2. The NS&I Savings Tracker examines savings behaviour across GB monthly, to report quarterly on who is saving, how much they are saving, target savings levels, savings objectives, and whether savings are increasing or decreasing. A copy of the NS&I Savings Survey can be obtained by contacting the NS&I media team.

3. The survey of peoples’ savings habits and likelihood to save in the future was carried out by TNS Phonebus among 1972 GB adults aged 16+ between December 2006 and February 2006.

“Which of the following stops you from saving more than you do?”	%
Not enough income	31
Too many demands on my finances	22
Rather live for the moment than save	12
I don’t think I need to save more	9
Cost of paying off debts	5
Interest rates aren’t effective enough	4
No time to explore all the options	2
Not sure what the best ways to save are	2
Lack of trust in the industry	2
Don’t know	10

 

“What are you currently saving for?”	%
Nothing in particular	41
Holiday	14
Retirement	11
Rainy Day	10
Home Purchase / Mortgage Payment	8
Home Improvements	7
New Car	6
Children	5
Higher Education	2
Special Occasion	2

Dax Harkins is available for interview and high-resolution photographs can be supplied.  Contact the media team to arrange an interview or request photographs by e-mail.

Media team
NS&I has a number of spokespeople available for interviews and our experienced radio team is available via our ISDN line: 020 7602 4522.

The numbers below are for media use only. Customers wishing to contact NS&I can find details here.

Gill Stephens		020 7348 9449
		gill.stephens@nsandi.com
Iman Asante		020 7348 9301
		iman.asante@nsandi.com
Angela Mason		020 7348 9433
		angela.mason@nsandi.com
ISDN for interviews		020 7602 4522
Out of hours		All numbers above diverted to staffed mobile phones

 

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