Over half of surprise bonuses are spent instead of saved

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Adults are spending more than half of any money received as windfalls such as inheritances and bonuses, with just 8% going towards mortgage or debt repayments, claims Birmingham Midshires.

The latest research, from the building society’s Saving Britain campaign, shows the average Briton received a monetary windfall of £5,944 in the last year, but just 40% was saved or invested, with 7% going towards the mortgage or paying off debts. In the survey of 2,000 adults, only 48% of bonuses, inheritance and other cashflows were put towards people’s futures, with 15% spent on holidays, 6% on cars and 31% on other luxuries. Birmingham Midshires also claims the type of windfall determines the way the money is spent, with those receiving redundancy pay putting 15% towards mortgage ...

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