More than 30 million adults across the UK are still saving despite the rising cost of living, new research suggests.
A survey of 2,236 adults, carried out by Ipsos on behalf of the Money and Pensions Service (MaPS) showed two thirds (65%) said they’d been putting money into savings in the past six months.
Respondents were asked whether they had been putting money aside into savings for any of four different reasons. Over a third (36%) said unexpected expenses and three in ten (30%) said holidays and day trips. One in five (19%) said special occasions, while 16% said “something else”.
The research also shows that 18-24-year-olds were more likely to say they had been putting money aside than any other age group, with four in five (80%) saying they’ve done so in the past six months.
Responding to the findings, MaPS said that having a savings buffer helps someone prepare for unexpected expenses.
Saving small, regular and affordable amounts is often more effective than saving larger amounts now and again as it helps people get into the savings habit.
MaPS recommends that people look at the best ways to save for their situation, starting with its MoneyHelper service. It offers a range of help and guidance, including free online tools and guidesOpens in a new window that cover the basics of savingOpens in a new window, like how to get started and get into the habit.
Government saving initiatives such as Help to SaveOpens in a new window can also help people on certain benefits get into the habit by giving them a bonus of 50p for every £1 saved up to £50 a month, with up to £1,200 available over four years.
However, MaPS recognises that not everyone is in a position to save, with previous research revealing that one in six UK adults have no savings at all. It’s urging people to use its services for help and guidance if they’re struggling to manage their money or feel they might be soon.
MaPS also recommends that those who have turned 18-years-old since September 2020 and haven’t done so already should trace their Child Trust FundOpens in a new window, which will give them a ready-made savings pot.
Jackie Spencer, Senior Policy Manager at the Money and Pensions Service, said:
“Having a savings buffer can help you deal with unexpected costs, so it’s great to see so many people are still managing to put money aside. Getting into the savings habit might seem daunting, but our budget planner and guides can help you get on the right track.
“However, not everyone is able to put money away and millions are living without a financial safety net. This can leave them vulnerable to sudden expenses, like a boiler breaking down or problems with their car, with a potentially devastating impact if their budget is already tight.
“If you’re struggling financially, or things are heading that way, you can turn to us free and in confidence at any time. I’d urge you to get in touch for help and guidance as soon as you think you need it.”