Average savings in the UK falling, latest poll shows

People in the UK want to save more in 2011 as the average amount they put away each month falls to just £82.92, a survey reveals.

Some 50% of the population now say they are saving money every month but this autumn the amount of money the population is saving has decreased according to NS&I's latest Savings Survey.

On average, Britons are setting aside £82.92 or 6.69% of their income every month, this is a decline from 12 months ago, when the population was saving £88.65.This figure also represents the lowest recorded level for autumn since the survey began and is down from last quarter, summer 2010, when the average amount saved per month was £87.37.This drop could be a result of declining income levels compared with 12 months ago. Average monthly take home income has fallen from £1,384.20  in autumn 2009 to £1,239.10 this quarter.

Male savers have been affected by this downturn in savings with savings levels falling from £107.35 in autumn 2009 to £103.15 this quarter. The amount women are managing to put aside each month, has also decreased, down from £71.07 12 months ago, to £63.43 this year.

On average, only half of the population (50%) say they save money every month. This is higher than autumn 2009, but slightly lower compared to last quarter, summer 2010 when it was 52%. The actual amount these people are managing to set aside has declined, down from £203.17 in autumn 2009 to £172.28 this quarter. This is the lowest this level has been since autumn 2006.

‘Many people may be feeling the squeeze. The festive period can be an expensive time but there are still savings to be made, if you’re prepared to shop around. Being smarter in planning your spending  by looking for promotional offers, buying cheaper brands and not leaving too much to the last moment  are simple ways to make extra savings this year. This will ensure you're not left with the festive financial blues in the New Year,’ said Tim Mack, Savings Spokesman, NS&I.

Looking ahead, people are slightly more optimistic about their savings in the coming year. On average, 29% of savers think they are more likely to save in 2011. In fact, since autumn 2008 the number who think they are more likely to save in the year ahead has increased from 25%, and the number who say they are less likely has decreased from 40% to 27% in autumn 2010.

‘It is pleasing to see that nearly a third of people are now feeling positive about their ability to set money aside next year. Many people appear to be approaching the New Year as an opportunity to review their finances and start 2011 on the right track,’ added Mack.