Recession has stopped Britain from saving

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.

Generational divergence

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.

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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.”