New analysis1 from Santander UK reveals that 10.3 million Brits (20 per cent) have no savings, leaving them exposed to unexpected expenditure. Although the average Brit saves £150 per month, a collective £81.8 billion2 a year, almost a fifth (18 per cent) save £50 or less.
The study, which investigates the savings habits of the nation, reveals that 52 per cent of people wish they could save more, on average an additional £388 each month. The most popular way to put money aside is in a savings account (53 per cent) followed by a Cash ISA (27 per cent). However, many Brits overlook investing as a way to manage their money with only one in 10 (12 per cent) saying they invest and utilise Stocks and Shares ISAs.
In fact, half of Brits (53 per cent) wish they had received more money advice at a younger age, rising to two thirds (66 per cent) for those aged 18 to 34, and decreasing to 42 per cent for those aged 55 and over. A quarter of UK adults (26 per cent) wish they had been taught more about investments and 21 per cent about budgeting, while almost one in five (19 per cent) wish they had received more advice about the different savings options available to them.
Helen Bierton, Head of Savings at Santander, said: “Our research shows that although many of us are saving, there is still a significant number who have no savings to fall back on or are not aware of all the options available. Developing a savings habit – no matter how small – is so important as it not only provides a safety net but is a way of providing for your future, and those of your loved ones.
“Santander offers a range of savings products with different options to suit individual customer needs and to help people achieve their savings goals, including both Cash and Stocks and Shares ISAs3. For those considering investments, we recently launched our Investment Hub to make investing more accessible with investments from as little as £20 a month.”
The findings also highlight that more than three quarters of UK adults (78 per cent) believe that being “good with money” is a learned behaviour that anyone can pick up with practice. In comparison, only 13 per cent believe that being either good or bad with money comes naturally and is a behaviour that cannot be learned or influenced in any way.
When asked who had been the biggest influencer on their money and savings behaviour, over two fifths (43 per cent) revealed their parents had been their example to follow, compared to one in 10 (11 per cent) who mentioned their partner as their biggest influence.
Dr Sam Wass, Channel 4 psychologist and research scientist at the University of East London, commented: “There are lots of factors that affect who saves up their money and who doesn’t – such as our willpower, and how much we value our long-term happiness over a more immediate, short-term reward. The research shows that most people agree being good with money is a learned skill and there are various techniques we can use to help us to improve our willpower and our organisational skills. It’s never too late to start!”
Almost two thirds of Brits (64 per cent) say that their friends or family would describe them as being “good with money”. Of these, almost three quarters (73 per cent) pay all their bills on time, half (50 per cent) seek out promotional offers rather than paying full price, 44 per cent keep an eye on their bills to see if they could be getting a better deal and 38 per cent pay off their full credit card balance at the end of each month. However, not everyone is so money savvy, of those who claim they are “bad with money”, 59 per cent say they run out of spending money before payday and 30 per cent have a lump sum of debt sitting in their account that doesn’t get paid off.
Most people say they are saving to increase their buffer pot (44 per cent) followed by a holiday (34 per cent) and to pay unexpected bills (26 per cent). A fifth (22 per cent) aim to top up their retirement pots and a further 14 per cent are saving for a home.
For more information on Santander’s savings products please visit: www.santander.co.uk/personal/savings-and-investments/savings
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The information contained in our press releases is intended solely for journalists and should not be used by consumers to make financial decisions.
Notes to Editors
1. Research was carried out online by Opinium from the 17th February to 20th February, 2017, amongst a 2,019 nationally representative sample.
2. 1,783 respondents selected an option that wasn’t “don’t know”. 1783/2019 = 88%. 88% of adult population (51,339,000) = 45,338,007. 45,338,007 * £150 = £6,820,420,477 saved per month *12 to get the yearly figure = £81,845,045,733
3. We are offering 0.5% cashback for customers (new and existing) who invest into a Santander Stocks and Shares ISA during the offer period (4 March 2017 to 16 June 2017).
The 0.5% cashback will be paid on the total amount invested (either through Financial Planning in Branch or via the Investment Hub) in the Santander Stocks and Shares ISA during the offer period (subject to a maximum of £100).
To qualify for the maximum £100 cashback, a customer would need to deposit £20,000 during the offer period. This can be either from their ISA allowance in 2016/17 (£15,240) or 2017/18 (£20,000) tax year or a combination of both tax years.
Customers are eligible for one cashback amount only. This will take into account the total amount invested into Stocks and Shares ISA whether it’s an existing Stocks and Shares ISA or a new one with us or combination of the two. This includes lump sum and regular premium contributions.
Customers are eligible for the cashback offer in other situations including:
a. ISA transfer-ins (from cash ISA, stocks and shares ISA or other types of ISA) where Santander accepts the transfer in of that type of ISA and the transfer is completed and money is received from the previous provider, during the offer period; or
b. Re-registrations to the Santander Investments Hub from other platform providers. The cashback will be based on the value of assets being re-registered when the transfer completes prior to the offer period end date.
Customers are eligible for the cashback offer if they haven’t transferred out, withdrawn or cancelled before the cashback is paid on 31 July 2017.
The cashback to be paid on 31 July 2017 into:
c. a Santander Investment Hub account;
d. a Santander current account; or
e. a Santander instant access savings account (non-ISA).
The value of investments and any income from them can go down as well as up, and you may get back less than the full amount you invest.
About Us
Santander UK is a financial services provider in the UK that offers a wide range of personal and commercial financial products and services. It has brought real competition to the UK, through its innovative products for retail customers and relationship banking model for UK SMEs. At 31 December 2016, the bank serves around 14 million active customers with c20,000 employees and operates through 841 branches (which includes 60 university branches) and 67 regional Corporate Business Centres. Santander UK is subject to the full supervision of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the UK. Santander UK plc customers are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, headquartered in Spain, with a meaningful market share in 10 core countries in Europe and the Americas. It is among the world’s top banks by market capitalization. The bank’s purpose is to help people and businesses prosper, in a way that is simple, personal and fair. Founded in 1857, Santander had EUR 1.52 trillion in managed funds, 125 million customers, 12,200 branches and 188,000 employees at the close of 2016. Santander made attributable profit of EUR 6,204 million in 2016, an increase of 4% compared to the previous year.
Media Enquiries
Sarah Webster T: 0207 756 5533 M: 07568 112 529 E: sarah.webster@santander.co.uk
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