As the economy continues to go through a period of low growth, increasing prices and the public sector looking to cut services, it looks clear that something has got to give and it seems that one of the avenues that is being hit hard are people's savings.
According to the latest report by National Savings and Investments people in Britain are starting to find it difficult to maintain their savings levels as they are spending a greater proportion of their income to keep their heads above water.
According to the report, the average person saved around £83 or 7% of their income in the three months to the end of December. This marks the lowest savings period since the data started to be collected in 2005, signalling that Brits are findings it very tough to save. When one looks at the trend it would seem that there is no let up either as Brits have started to save around £5 less per month than the previous quarter. Perhaps as worrying is the fact that, not only has the value decreased, but also the sheer volume of savers has fallen according to the report. The number of individuals who save on a regular basis has decreased from 52% of respondents over the summer months to 50% currently.
The report also cites falling incomes as a possible explanation for savers saving less cash. Take home pay is down on average about £150 this quarter compared to a year ago. Finally, the survey found that many people (around 30%) do not feel that their savings situations are likely to improve over the next year. It looks like, for the time being anyway, this situation is here to stay.