One in five 'can't afford to save'

Last Modified: 28 Mar 2008
Source: PA News

Nearly one in five Britons claim they cannot afford to save because of increases in the cost of living, a survey shows.

About 17% of people said they were unable to set money aside on a regular basis because of the rising cost of essentials, with half of these admitting they simply ran out of money by the end of the month.

At the same time, 50% of people who do save on a regular basis said they had often withdrawn contributions they had made at the beginning of a month by the end of it, with one in five people admitting they raided their savings every month, according to the Post Office.

Savings levels also take a hit in the run up to Christmas, with 43% of savers saying they stopped setting money aside or reduced contributions leading up to the festive season. A total of 21% said they did not start saving again until March at the earliest.

Richard Norman, director of savings at the Post Office, said: "In times of economic uncertainty, it's more important than ever to try to put money away.

"Our advice is try to keep saving regularly, even if it's just a small amount, and consider saving less frequently such as every other month."

Opinium Research questioned 2,003 people during March.

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