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An increasing number of Brits are now seeing saving as important but the majority are still simply not saving enough.

Nationwide has found that over a quarter of consumers save nothing at all, with less than half saving regularly. However, more people see the benefit of saving – 60% of people think that saving is an important thing to do.

And people are trying – a significant 60% of Brits admit to saving less than they need to, compared to 56% six months ago. Looking forward, consumers are more confident about their ability to save in the future than at any time since Nationwide began its survey in June 2008 – almost one in every five of consumers think they’ll be saving more than they do now in six months time.

Andy Hutchinson, head of savings at Nationwide, says: “This month’s survey provides further evidence that consumers continue to find the environments enabling them to save are unfavourable. Rising unemployment and falling income growth clearly make it difficult to save, while the low level of interest rates may have increased the incentive to prioritise debt reduction over deposit accumulation. However, it is encouraging to see that there has been an increase in confidence about the future ability to save, which is consistent with recent rises in consumer confidence about the overall economic situation.

“With household financial wealth having fallen significantly as a result of house price and equity market declines, it is more important than ever for consumers to rebuild their savings position for retirement. Initially, increased saving is likely to occur mostly in the form of debt reduction, yet once debt reaches a more sustainable level in relation to incomes, there should be opportunities for households to put more money into deposit savings and other financial assets.”

SOURCE: Nationwide, 17/06/09

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