Just over half of the UK population sees itself as savers but at least one in eight of 35-54 year-ol...
Just over half of the UK population sees itself as savers but at least one in eight of 35-54 year-olds see paying off their mortgage as their way of saving, suggests research from Abbey National.
A poll has been produced by BMRB for Abbey National has discovered that the concept of 'savings' does mean different things to different people depending on their age.
While 72% of 16-24 year olds see savings as putting money into a savings account, at least 19% of this age group also believes that spending less could be classed as saving.
Homeowners, on the other hand, view the paying-off of their mortgage debt as the "most important saving to be made" because they then hold a solid commodity at the end once payments are complete.
At least 12% of 35-44 and 14% of 45-54 year old see the home as a vital savings tool, however, it is only in this age range where pensions are seen the most important form of saving.
|% Putting money into a savings account||72||65||55||47||45||54|
|% Spending less than usual||19||14||17||13||16||20|
|% Paying into a pension plan||3||9||12||16||10||11|
|% Paying off a mortgage||3||5||12||14||11||5|
|% Paying off credit card||2||6||3||7||8||5|
There also seem to be regional divisions between respondents choosing one form of savings over another, as people in the south-east say they are most likely to view savings accounts as their chosen form of saving.
People in the north-west are also most likely to consider paying into a pension while homeowners in the east Midlands see their mortgage completion as their main source of saving vehicle.
Along with regional data, BMRB also discovered that less than 25% of people consider the phrase "long-term" – when referring to the length of an investment strategy - to mean more than 20 years.
More worringly, over seven out of ten of the 995 people questioned believe "short-term" investment amounts to less than a year.
Contact Abbey National for regional breakdown of this research.
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