Over half of the UK population (56%) believe that they are not currently saving enough, according to the latest research from Aldermore’s 2017 Annual Savings Tracker.
Inconsistent savings habits are cited as a possible reason for this, with almost two-fifths (37%) claiming that they only saved if they had money left over at the end of the month, with just under a fifth (18%) stating that they saved a different amount each month.
Less than a third (29%) followed the recommended habit of putting aside a regular amount each month.
The research also revealed that more than one in 10 (13%) only saved when they received additional income from a bonus, and nearly a quarter (24%) of 18- to 24-year-olds only saved when they remembered to.
The financial pressures of wages not increasing in line with the cost of living is having an impact, with nearly seven in 10 non-savers (69%) claiming the cost of necessary outgoings as the main reason why they do not save.
The research revealed that despite the financial pressure on the younger generation, young people are adopting a saving habit from a young age, often from the age of 19.
Nearly three-quarters (74%) of 18- to 24-year-olds felt they were not saving enough.
“Our Savings Tracker reveals that the majority of people (56%) believe they are not saving enough and a significant proportion are not making regular contributions towards their savings pot,” said Ewan Edwards, head of propositions of savings at Aldermore.
“The findings also show over one in 10 (13%) rely on a bonus when they want to add to their savings.
“Instead, more people need to set aside a regular amount at the beginning of each month for their savings, making this a lifestyle choice and a consistent habit.
Ewan continued: “It is encouraging to see an attitudinal shift from 18- to 24-year-olds when it comes to adopting the savings habit, with this generation starting to save from a younger age.
“This is positive news, but this age group still believes they are not saving enough and this echoes across the UK.
“I would like to encourage everyone to make even slight changes to their savings habits, by saving even a small amount regularly and by shopping around to get the best rate as this can make a surprisingly positive difference in the long term.”
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