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Media centre /
Press releaseNS&I’s QUARTERLY SAVINGS SURVEY: WINTER 04/0502 March 2005
The second quarterly analysis of the way British people save and invest will be published on 2 March by National Savings and Investments (NS&I). The NS&I Winter Savings Survey reveals a widening gap between men and women, with more men saving regularly, saving a greater amount in absolute terms and as a percentage of income. Despite women aspiring to save more than men, men now have an average of 50% more savings than women. The NS&I Savings Survey includes research undertaken between December 2004 and February 2005 and examines savings patterns during the quarter, as well as likely saving patterns in the next quarter. KEY HIGHLIGHTS SAVINGS TRACKER: how have Brits been saving over the past three months?
PROPENSITY TO SAVE: how will Brits save in the next three months (March – May 2005)?
SAVINGS CHANNELS: (See separate NS&I release*)
SAVINGS COMPARATOR: rate trends
Dax Harkins, senior savings strategist at NS&I, commented: “This Winter Savings Survey has highlighted a growing and worrying problem in women’s savings habits. Women’s salaries are, on average, lower than men’s so you would expect a lower amount of savings, both in total and regular monthly amounts. But, they also save a lower percentage of income. The net result is that their total savings are falling further and further behind men’s. They say they would like to save more, showing that they do have a strong savings ethic but they need to find ways to turn this very positive thinking into positive action. “On a more positive note, across the country more people are saving and our propensity to save index shows people are strongly motivated to save more over the next three months. Our product comparator shows there are excellent rates to be had across the range of products and it is important that people take advantage of this.” THE SAVINGS TRACKER IN DETAIL The proportion of regular savers has increased from 54% to 56% since the autumn and the average amount saved by regular savers in the UK remains stable: £162.32 in November, £162.70 in February. This is despite savers predicting a fall in their savings: the autumn survey’s propensity to save figures showed a likelihood to save less over this quarter (-18%), however, this has not been the case and savings have largely withstood the seasonal demands. The amount saved as a percentage of income has risen from 6.70% last quarter to 6.90% overall for this quarter. Savings as a percentage of income peaked in January at 7.27% but fell again in February to 6.58%, perhaps showing the lapse in New Year’s resolutions, or excessive Valentine’s spending. Gender divide widens Men’s average savings are now 50% higher than women’s. Men hold an average total of £21,026 compared to women’s average total of £13,989. Though both have increased their overall savings since the autumn, men have widened the gap between their and women’s savings from £5,288 to £7,037. This is also illustrated in the gap between the monthly amount saved regularly and the percentage of average income saved. However, women are closing the gap in the proportion of regular savers and propensity to save. They also continue to have higher aspirations to save. Table 1: Savings gap between men and women – winter quarter
*All figures in brackets = autumn quarter survey The best savers Young and determined savers (YADS) are still leading the pack when it comes to saving, with 16-24 year-olds putting aside 9.25% (9.80% - autumn) of their income on average. The regular savers in this age group increased the average amount saved per month from £134.61 to £138.70. 25-34 year-olds also increased their regular monthly savings from £186.06 to £188.98. Financially vulnerable strive to save Singles, part-time workers and DEs would like to save more of their incomes than other groups. Singles are succeeding in these ambitions, saving a higher proportion of income (8.35%) than people who are married/cohabiting (6.58%) or widowed divorced or separated (5.98%). Regional trends – North/South divide (see map in report + table 2 below) This quarter saw a striking reversal of the regional trends in the autumn. Southern regions showed an upward trend while the Northern regions (excluding Scotland) showed a downward trend in terms of percentage of regular savers and proportion of income saved. Yorkshire and Humberside headed this trend, having saved the highest percentage of income in the autumn it now saves the least in the UK, saving just 5.67% of income. In contrast the Southern regions have improved compared to the autumn, and now Greater London tops the league, saving 8.30% of average income. This may simply be a seasonal fluctuation. In November the Northern regions predicted a decline in saving, perhaps acknowledging the affect Christmas expenditure has on their savings. We will continue to monitor the regional trends with interest. Table 2: Regional trends
*All figures in brackets = autumn quarter survey SAVINGS PRODUCTS COMPARATOR A comparison of rates available across different products has shown that rates have remained stable over the quarter. This is unsurprising as the base rate has been at 4.75% since August. However, the top rates of all accounts are higher than this, due to strong competition in the market, giving savers an additional incentive to act now. PROPENSITY TO SAVE RESULTS IN DETAIL Data from the propensity to save tracker shows saving is back in fashion, with people much more positive about their savings ability over the next three months. A balance of +9% of people say they would be more likely to save, a huge improvement on autumn’s negative result of –8%. While this doesn’t dictate actual behaviour it is a good sign that people plan to save more. Age The majority of people showed a negative propensity to save in the autumn. Perhaps buoyed up by their achievements over this quarter the majority are now expecting to save more not less. 16-24 year-olds again had the highest propensity to save, increasing from +24% to a huge +44% this quarter. All other age groups also intend to save more in the spring, with the exception of over 65s who you would expect to be in the process of spending their savings. Regions Yorkshire and Humberside had a low propensity to save (-18%) in the autumn survey and this quarter confirms that they meant it. They dropped from being the best savers to the worst savers in the UK. This winter survey shows they intend to do better next quarter, with a propensity of +19%. All the other regions have improved propensity to save except East Anglia which has dropped from +1% to –2%. Overall actual savings in the winter months have outperformed the propensity to save recorded in the autumn, with savers generally improving rather than saving less. The next saving survey should see a much larger improvement in savings if people live up to their good intentions. ENDS Notes to Editors * See NS&I release ‘Internet usage stores but savers still want branch access’
Further information from the Savings Survey Socio economic groups
The average amount held in savings, excluding pensions, was £17.623. The amount people think that they should have in savings is 62.23% higher at £28.606. 10% have no savings.
There is a significant divide between those who are saving modest amounts monthly, and those who are saving significant sums. 20% of people are saving less than £99 per month, and 10% of regular savers are saving over £300 per month. Super savers – those saving over £300 per month
Savings as a percentage of income (Average saved per head / (man income / 100) By age:
By socio-economic group:
By working status:
By marital status:
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. NS&I Media Team Mark Brooks 020 7348 9301 mark.brooks@nsandi.com
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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