How much UK citizens are saving

The issue of savings in the UK is becoming more and more important, also due to the huge inflation of the last months. Having savings on hand – either to invest or to keep in a savings account for rainy days – is therefore more and more essential, not least to have guarantees for the economic future of an individual or a family.

Average savings in the UK

There are several researches in this regard, which show us a rather cautious and careful reality: generally speaking, in the UK, every family prefers to save a significant amount each year. This ensures that there is an additional sum, over and above the monthly income, to be used for an emergency of any kind, or for what is referred to as “rainy days”. Clearly, the situation varies depending on the age of the individual and monthly income. Although the average UK resident’s savings usually exceeds £6,000 per year, there are many UK citizens who have no savings at all. In particular, savings statistics show us that in 2022 around 40% of those under the age of 29 will have no savings at all, while for those over the age of 55 this percentage drops dramatically, to under 3%. This is also reflected in the debt statistics; it is in fact the youngest who have the most problems in this respect, in addition of course to workers with very low incomes.

Why saving is important

There are various reasons for which is important to save, even a small amount, every month. Starting with the above-mentioned rainy days: at any time, an unexpected expense may occur. A domestic accident that prevents us from working or carrying out certain activities, a serious illness that requires appropriate medical treatment, not necessarily available from the public health service, a child getting married or deciding to buy a house, asking his or her parents for help: there are many situations in which having savings available, invested appropriately, is very important. In addition to this, in recent months inflation is also taking its toll, which leads not only to the need to save more, but also to the correct use of the capital set aside. Although after years in which inflation remained below 3%, the year 2022 saw figures that many had forgotten. Taking into account October 2022 alone, inflation has exceeded 11%; in such a scenario, investing one’s savings not only allows one to have capital available to respond to any unforeseen events, but also to avoid that this capital loses value as time goes by.

What to invest in

There is no one type of investment that is absolutely better than any other. Much depends on the capital one has available, one’s needs and also one’s knowledge of speculation. Savers wishing to invest their savings refer to financial advisers who, based on the specific needs of the trader, plan an investment portfolio that reflects the individual risk appetite and return expectations. Financial institutions and brokers increasingly operate online and thanks to the web, it is now possible to easily find the help of experienced professionals who can advise on the best investment proposals. It is worth remembering that any type of investment also carries a certain risk of losing some of your capital, so getting the advice of an expert is always a good idea.