02/09/03

Abbey National’s ‘Savings Insight’ reveals that saving for long-term reasons such as old age have increased by more than 50%.

Although only two fifths of adults regularly save money in the UK, those who are saving for a specific reason are looking more towards the long-term than the previous year, according to Abbey National’s latest Savings Insight report. The research, conducted for Abbey National by the Future Foundation, reveals that there has been a move away from saving for short-term reasons such as holidays and a big increase in saving for old age, children and buying or improving a property.

While less than half (40.5%) of regular savers do not have a specific reason for putting money aside, for those that like to ‘ring fence’ their savings, long-term reasons appear to be on the increase. More men are now saving for old age than in 2002, overtaking women who save for old age. Last year more women said they saved for old age than men, (6.8% of women compared with 6.1% of men) but this year men (11.1%) are more likely to be saving towards old age than women (8.7%).

There has also been an increase of more than 50% in saving for children and home improvements. On average there has been an 8% increase in saving to buy a property, but a 16% increase in the number of women saving to buy a house compared with last year.

Abbey National’s Chief Economist, Barry Naisbitt, said; “There are some important changes in attitudes to saving compared with last year’s survey. There has been a noticeable shift in what people say they are saving for, with long term savings such as old age and housing, rather than short-term goals of holidays, becoming more of a priority.

“Given the Government’s focus on making savings products easier to understand and concern about the ‘pension gap’, this attitudinal shift is very positive. However, with only two fifths of adults in the UK regularly saving, there is still a major challenge ahead to encourage more people to put money aside”.

Abbey National’s Savings Insight looks into factors which influence savings and the reasons for saving. This report also looks back over the past decade to identify regional patterns of saving behaviour.

Regionally, more people regularly save in the North (48%) than anywhere else in the UK, an increase from last year at 45.5%, followed by the South East (45.5%). The proportion of savers in Tyne and Wear and Greater Birmingham have decreased slightly over the past year, and remain at the bottom of the table with the least proportion of regular savers at 36%.

There has been a vast change in the amount saved by region per month over the past decade. Ten years ago the difference between the largest and smallest amount saved per month was only £75, today £135 divides the smallest amount of £110 by Merseyside savers and the largest amount of £245 put aside by those in Greater London.

Provided by the Abbey National