ONS are saving the most for a decade, figures released yesterday by National Savings and Investments (NS&I) – the state-owned savings bank – shows.
Monthly savings are currently 8.52 per cent of pay, up from 8.04 per cent last year. It is the highest share of monthly pay saved since NS&I began its survey in 2004.
The UK’s rising house prices are a major reason to save with 49 per cent of those aged 25-34 saving to cover housing costs, which includes saving for a deposit. Of those aged 16-24, around 41 per cent said they were putting money aside for housing costs.
Despite the record level of savings, 29 per cent of people did not believe they had enough money in case of an emergency.
“The latest results are encouraging, but we hope more people will be putting aside money into their rainy day savings, so they feel ready to deal with an emergency should one arise,” said Julian Hynd, a director at NS&I.