Nearly one third of Brits do not have savings accounts

Nearly one out of every three Brits do not have their own savings accounts, a new report by Skipton Financial Services recently revealed.

According to the recently conducted research study, due to rampant rises in the cost of living, the typical family in the UK needs to make at least £24,600 annually just to keep their heads above water.  This has led to many families that are struggling financially to give up on trying to save for their future with savings products such as fixed rate bonds or other related offerings, Skipton said.

The survey polled 2,000 households across the UK with two children or more, revealing that such basic costs as home upkeep, telephone bills, clothing, transport,food shopping, insurance, utility bills, and paying rent or a mortgage, now add up to a sum of nearly £25,000 every year.  This means that annual household earnings must be at least £32,700 for taxpayers paying the basic rate.

The largest costs to households proved to be mortgage payments, with the annual average being around £4,730 – £394 on a monthly basis.  Close second was the cost of food, at £86 a week, or £4,457 every year, while paying off credit card debt topped £3,000 annually and £2,500 went to the cost of petrol.

Savings rates have plummeted in the face of such massive costs, with the survey finding that four out of every ten Brits end up putting spare cash towards goods and services instead of in a savings product.  Out of those who do put money away for the future, around 25 per cent have reported saving less this year than they did the previous one.

Skipton managing director, Andrew Barker, went on record by referring to the recent increases in the cost of living as ‘astronomical.’  Mr Barker urged Brits to keep a very close eye on their expenditures during times of extremely high inflation.

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