A new study has revealed that nearly half of the UK population have stopped or reduced the amount of money they save in the past year.
The research by price comparison site MoneySupermarket.com found that 47 per cent of Brits have cut down on their savings, with 52 per cent of those (roughly 12 million people) doing so meet everyday living costs, and 18 per cent tightening their budgets to focus on clearing outstanding loans, credit cards and other unsecured debts .
Over a third (37 per cent) said they had been affected by reduced income, which meant they could no longer afford to put money away into savings, while a further 19 per cent said they did not save in the first place.
When quizzed on what they had stopped buying or cut down on in order to save money over the last year, most respondents (45 per cent) said eating out, followed by buying new clothes (40 per cent) and going on holiday (32 per cent).Other answers included giving up alcohol and cutting back on haircuts.
Commenting on the findings, Kevin Mountford, head of banking at MoneySupermarket, said: “It comes as no surprise that many people have reduced and even stopped saving completely at a time when cost of living is high against a backdrop of ongoing low interest rates .”
“While many are being forced to reduce their savings in order to pay for every day necessities, it is encouraging to see some consumers taking action and cutting back on lifestyle luxuries to prioritise their savings .”
“For the large number of people with no savings at all, it is important to try and start to save, no matter how small the amount,” he added. “Even putting away just a few pounds a week can add up- as every penny counts. Over time this will build up and help to pay for unexpected bills.”
