More than a quarter (28%) of respondents stopped saving in light of the recession and have not saved since, according to research by Now: Pensions.
The survey, which was conducted by OnePoll and questioned 2,000 people, found that a quarter (25%) blame frozen wages and rising bills for their lack of savings.
The research also found:
- 74% of respondents think Britain has no savings culture.
- 32% of respondents have less than £500 in savings.
- 15% of respondents have no savings at all.
- 10% of respondents believe there is no point in saving when interest rates are so low.
- 70% of respondents are worried about their current lack of savings.
The research found that the economic crisis had the greatest impact on the savings habits of the baby boomer generation (51-to-71 year olds). Almost a third (32%) of respondents from that generation said they have put an end to regular savings since the crisis began.
More than one in ten (11%) respondents aged over 51 said they have no savings at all, but 38% of respondents from Generation Y (18-to-31 year olds) said they have been saving more since the crisis began.
Morten Nilsson (pictured), chief executive officer of Now: Pensions, said: “With low interest rates and the rising cost of living, saving has inevitably taken a back seat for many.
“But the recession isn’t solely to blame for the lack of a savings culture in Britain. As credit has become more accessible and acceptable, the motivation to save has diminished.”