Britons intend to save 30% of their disposable income this month, suggesting fears of a UK recession...
Britons intend to save 30% of their disposable income this month, suggesting fears of a UK recession are increasing, according to the first in a series of findings from Alliance & Leicester's "Wealth Tracker Index".
At a time when interest rates are at their lowest level since The Beatles topped the charts, the findings show that, on average, Britons intend to save £93 this month, to total around £4bn across the UK.
Findings also show Britons are not taking advantage of investment opportunities and would still rather borrow more money to finance their lifestyles.
The "Wealth Tracker Index" findings, based on a sample of 2,000 people, reveal that on average people's monthly disposable income this month will be £287, after household bills, mortgages and borrowings. Of this amount, people intend to put £116 (40%) of monthly disposable income into savings and investments, according to Alliance & Leicester.
Despite many people spending money on holidays abroad this month, three out of four Britons also say they are now putting money away for a rainy day, suggesting that fears of a UK slowdown are mounting.
The slowing economy is weighing heavily on the British public, according to the survey, which suggests Britons intend to borrow more than twice what they will invest this month to total £56 against £24.
Those with a lower income save relatively as much as the wealthy. Wealthier people have a higher monthly income so intend to save and invest more money in absolute terms this month, but as a percentage of income there is no difference between the rich and poor.
Crucially, this suggests the less wealthy place just as much importance on saving and investment as the rich, a finding which appears to disprove the myth that the less well off do not save or invest enough money.
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