A third of Brits struggling to save

25 February 2013

Brits are struggling to save, with 31% of UK adults failing to tuck away anything at all over the past 12 months.

While 63% of Britons did manage to put a bit aside each month, according to a survey by Scottish Widows, nearly a third of us had savings of less than £1,000. This is at a time when combined average monthly mortgage and council tax costs stands at £1,009.

But most worryingly, eight million people (17% of British adults) have no savings at all.

Unsurprisingly, we're turning to our families for help. The survey revealed a quarter of respondents with families had loaned £15,000 to their children on average, up 11% from the previous year.

This level of support is having a big effect on parents' savings, with 24% of those surveyed admitting to cutting back on the amount they save and 8% stopping saving altogether.

Take the long-term view

But Iain McGowan, head of savings and investments at Scottish Widows, urges savers not to neglect their future financial needs:

"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."

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