According to the latest research by Schroders, almost a third of people in Britain have dipped into their savings in order to pay for everyday living costs over the last 12 months.
The survey suggest that individuals have taken as much as £4,600 over the last year from their savings - totally, an estimated £60 billion across the country. This may well have long-term consequences for the financial security of many people trying to make ends meet today. Furthermore, it also is an indication that many people are still not living within their means.
It would seem that more women than men are susceptible to invading their savings accounts with 34% of women doing so compared to 28% of men. However, the most likely demographic to do so are the nearly retired and elderly. This is clear evidence that many elderly people are struggling to make ends meet on their regular income.
Although individuals are being hard pressed, the report also highlights that a significant proportion of people are opting to dig into their saving rather than alternatives such as taking out a loan. This is beneficial for consumers as they do not have to deal with potentially high interest rates to help fund their living. Additionally, in the long-term funding day to day living costs through loans could actually get you into more trouble when it comes to repayment. Therefore it probably makes more sense to cover costs with your savings before thinking of seeking debt finance elsewhere. Or a better solution could be to try and reduce the costs in the first place.