Are People in the UK Still Saving Despite the Cost-of-Living Crisis?
Since the beginning of the cost-of-living crisis, around 9 in 10 people have noticed rising costs of food, energy bills and fuel prices. Just over half of these people have changed their lifestyles accordingly. Key measures they have taken include spending less on non-essentials and using less gas and electricity in their homes.
Who is affected most by the crisis?
The situation is particularly tough on those from low-income households, who were already spending most of their income on essentials before. Even with additional help offered by the government, many are still struggling.
For those who feel they still have the capacity to save, research from Leeds Building Society has found that those in the 18-34 age bracket have been most inspired to start investigating various saving account options.
More people becoming conscious of their saving options
There has been an explosion of people shopping around for better savings accounts. Google found a record number of UK searches for this occurring in September 2022.
Matt Bartle, Director of Savings from Leeds Building Society notes this trend, saying: “By examining Google Search Trend data, we’ve learnt that UK searches for the phrase ‘Cash ISAs’ are up 183% year-on-year, and searches for ‘Regular Saver’ are up 54% too.”
Are people still able to save?
Though saving is clearly at the forefront of public consciousness more than it was, high inflation rates make it easy to wonder exactly how much the average person is managing to put away.
Many report dipping into their savings more than before, while those who do manage to save are commonly feeling able to put in less than £100 per month.
The findings from Leeds Building Society, which surveyed 2,000, found that 59% of UK adults are able to put some money aside each month. Meanwhile, 11% are simply trying not to dip into the savings they already have.
What are we saving for?
For many of us, the motivations for saving have switched gears. A quarter of those surveyed reported aiming to save more money for a rainy day, while one in seven had a specific purchase in mind to save up for.
Help & Support for financial wellbeing
The stress of the current financial climate is a very present struggle. In the long term, debt and pension advice need to be easier to access at an earlier stage. If you’re struggling right now, make sure you check your eligibility for government help with cost of living payments.
No matter how little you might be able to save, opening a savings account could be a helpful move.