Embargoed: Not for use before: 00.01hrs, Monday 26 January 2004
10/04
TIPPING THE BALANCE IN FAVOUR OF SAVERS
Britons improved their savings habits over the last year, saving an average 20 per cent
more a month in 2003 compared with 2002, according to new research from Lloyds TSB
Savings. The average amount put aside each month rose by £45 - from £241 per month in
2002 to £286 per month this year.
However, the Savings in Britain report, now in its third year, found that the last six
months were not quite as successful for optimistic savers as they expected. Six months
ago 38 per cent expected the amount they saved to increase. The reality half a year later is
that 30 per cent achieved an increase.
Likewise, six months ago 15 per cent predicted that the amount they saved would
decrease. In fact, 21 per cent have seen the amount they are tucking away dwindle, while
the number of people with no savings at all has stayed level during the year at just under
30 per cent.
Lack of available cash remains the main reason given for an absence of money tucked
away. In 2002, almost two thirds reported that a lack of money was the main reason they
didn't save, and this remained the case in 2003.
Matthew Osborn, from Lloyds TSB Savings, comments: “Increasing economic stability
and growth in employment in 2004 will mean that, compared to 2003, many more people
will find themselves with that bit extra to put away. Despite the recent small rise,
mortgage rates remain low, but people need to heed the warning and rein in their
spending in favour of saving. They should be looking far more favourably on saving as a
means of planning for the future.”
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TIPPING THE BALANCE IN FAVOUR OF SAVERS/…2
This optimism is already evident. Looking ahead to the first half of 2004, two in five (41
per cent) believe that their level of savings will increase and the same number feel their
savings will remain constant. Fifteen per cent, however, think that the amount of their
savings will dwindle and this rises to one in five of those aged between 35 and 54.
The age gap plays a big part in the health of the nation’s savings and it is the grey savers
who are suffering the most. While 57 per cent of 18 - 24 year olds think that their
savings will increase over the next six months, only 26 per cent of the over 65s are saying
the same. However, they do have good grounds for their lack of optimism. This is the age
group least likely to have seen their savings increase in the last six months (just one in
five reported an increase), while a quarter (24 per cent) saw their savings shrink in the
second half of 2003.
Matthew Osborn, adds: “I believe that 2004 will be a much happier year for savers
generally. With interest rates on the rise and the economy looking stronger than it has
done in some months, saving will be an even more attractive option than it was in 2003.”
-endsNotes to Editors:
 The research for the bi-annual Savings in Britain report was carried out by ICM
Research 5 to 8 November, using 2,011 adults aged over 18 across the UK.
For further information:
Jo Ganly / Shelley Lopez
Lloyds TSB Press Office
Tel: 020 7356 22075 / 2444