Latest quarterly savings figures published by National Savings & Investments suggests there is a developing "hardcore" of people who simply do not save, boosting the overall non-savings rate, which remains stubbornly high.
For various reasons, some 45% of the adult population currently is not engaged in regular savings, NS&I states.
Some of the savings message is getting through, with the latest quarterly results – based on a survey carried out between December through February on 1,972 people aged 16 and over – also suggesting it was the second-best period for net savings since the executive agency started publishing its figures in the autumn of 2004.
The net savings ratio hit 6.90% in the period, down from the 7.16% in the autumn of 2005, but ahead of the three quarters beforehand.
The latest savings ratio realised is still, however, less than half the target average of 14.46% over the period reported. NS&I says despite the ongoing improvements it is “concerned” over the strong core of non-savers, which seem to prefer living for the moment than saving - some 12% suggested this was the reason for not saving regularly.
A third of the non-savers blamed insufficient income in order to save regularly, while just over a fifth, 22%, blamed “heavy financial demands.”
Young people emerge as the best savers, with some 9.65% of 16-24-year-olds saving regularly, followed by singles (7.60%) and men (7.32%).
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