Savers told of benefits of small sacrifices
Published On 6 November 2006
A new report from a leading building society indicates that small sacrifices by UK consumers could save over £44 billion annually and help wipe out the nation’s savings gap.The study from the Yorkshire Building Society (YBS) indicates that the UK’s £27 billion savings gap could be vastly reduced if UK consumers collectively tightened their belts and saved an average of as little as £3 per day.
In a poll of 1631 adults, 84 per cent felt that their daily expenditure could easily be reduced simply by tightening their belts, a move that would help close Britain’s yawing savings gap.
The findings are supported by the savings industry. A recent survey by Aegon found that two thirds of independent financial advisers felt that the UK’s savings gap could be attributed to a lack of available information and adequate financial education.
The YBS study found that 57 per cent of people questioned could manage to save £3 daily or £1095 annually, while 11 per cent, the most optimistic scrimpers, believed that £11 of daily savings were achievable.
Up to 15 per cent of men and eight per cent of women said that they would be able to save over £11 per day.
However, women were more willing to attempt to tighten their belts. Only 5.6 per cent said that they were unwilling to make any small changes to their lifestyles to save money, while 10.9 per cent of men said that they would not.
YBS’s Tanya Jackson said: “With the UK facing further interest rate rises, rising house prices and a savings gap of £27 billion, consumers should seriously consider tightening their belts and getting into the habit of saving regularly.â€
Of those polled some of the most popular methods of scrimping included making packed lunches, turning down central heating thermostats by a couple of degrees, eating out less, driving slower and cutting holiday expenditure.
Bradford-based YBS is the UK’s fourth largest building society and recently boosted its customer base with the acquisition of MBNA’s 8,500 person strong UK savings arm.
