HOUSEHOLDS’ annual savings are set to fall by as much as £800 over the next five years, as confidence returns and spending takes over, according to a report out today from the Post Office and the Centre for Economics and Business Studies.
Last year, the average household had £3,780 to save after costs such as housing and holidays. That was down from £4,414 in 2010, when families were cutting back and saving as a result of the financial crash.
And the level of potential savings will fall further as confidence grows.
This year it will fall to £3,630, down to £3,518 in 2015, £3,297 in 2016 and £3,120 in 2017. By 2018, possible savings will be down to £2,944. After accounting for inflation, that means savings levels will be back to the same levels as were seen in the 1960s, as well as in 1987 and 2000.
The study also found that 22 per cent of savers already expected to put away less money next year.