More UK Households to Start Actively Saving by 2057

When it comes to saving, Britons have always had a bad reputation. Despite the advice of countless banks, building societies and financial experts, it seems that people in the UK simply don't save enough of their annual income. Statistics from consumer debt charity CreditAction show that 11.7 million people were saving less in July 2007 than they were three months ago. Additionally, 6.8 million people were not saving anything at all.

However, a recent report released by National Savings and Investments shows that the number of households that are actively saving could increase significantly by 2057. The report, entitled NS&I's Century of Saving in celebration of the 50th anniversary of Premium Bonds, shows that 37% of households saved regularly in 1957 - but today 43% of households actively channel money into savings. This is expected to rise to 50% by 2057, which would bring the total volume of savings from £43 billion to £150 billion.

Moreover, the study also shows that by 2020, more women will be making the majority of household financial decisions. Statistically, this will affect savings levels as women are often proven to be better at saving than men. Speaking about the research, Dax Harkins, NS&I's senior savings strategist commented:

"Women have a stronger hand to play than in the past, and will be the key decision makers in many households within a generation. NS&I's own Quarterly Savings Survey shows that women are consistently aspiring to save more than men, so this should help drive higher savings levels in the future."

Many savings experts will be hoping that the rise in savings levels that the NS&I expects to occur by 2057 is accompanied by a rise in financial education. For instance, CreditAction statistics show that in June 2007, around 15 per cent of 18 to 24 year olds think an Individual Savings Account (ISA) is an iPod accessory, while one out of ten people in this age group think it's an energy drink.

Currently one in four people (27%) in the UK have no savings at all, while a similar amount of people have less than £3000 in savings. Overall, statistics from Combined Insurance show that half the population could survive financially for only 17 days if they're faced with an unexpected loss of income. However, NS&I's indication that this may well change in the future is sure to come as some comfort to many savings providers - particularly if the gender reversal in household financial dealings has anything to do with it!

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Author - Matthew Pressman - Finance advisor in London

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