While the Bank of England may still cling to the idea that we’re ‘a nation of savers,’ new research indicates hat savings account activity in the UK has been fluctuating over the past few years, and not necessarily for the better.
According to a Lloyds TSB report, the amount of income being deposited into savings accounts in the UK has been on decline over the past ten years, though the recession led to an increase to 7 per cent as people shifted their focus away from spending. Even in the face of interest rates on the lion’s share of savings accounts dropping below the nation’s soaring inflation rate, Brits with fears about the security of their jobs or feeling the squeeze in the availability of consumer credit have led households in the UK to re-prioritise savings, with the average family holding around £5,000 in investments and savings.
However, other nations put UK savings rates to shame, as Germany’s consistent savings rate is 10 per cent, or around £8,600 (€10,000) per household. Meanwhile, China dwarfs both Germany and the UK’s savings rates, where the average urban household saves around 47 per cent of their disposal income, roughly equivalent to more than £19,300.
The almost shockingly high savings rate in China is attributed to the most part to the complete lack of any kind of social security provisions in the country, making saving a necessity in order to provide funds for retirement. leading only 3 per cent of adults in China neglecting to take out some form of savings.