As someone who has been saving during lockdown, it is refreshing to see that in this time of uncertainty and an ever changing ‘normal’, more people are reporting to be better off financially.
The average Briton may have saved a substantial amount per month during the coronavirus-related lockdown. Cash saving company, Raisin UK, said little to no commuting, socialising or dining out, and a change in spending habits are contributing factors.
The lockdown savings facts*
- It surveyed 2,000 Britons after noting an 810% increase in new customers during lockdown. Nearly a quarter of respondents grew their savings during the lockdown and felt it was rewarding to do so.
- Over a third of the people said they spent less on takeaways, over a fifth spent less on alcohol and a tenth spent less on cigarettes.
- Despite those on furlough only being paid 80% of their normal salary, 44% reported an increase in their savings.
- A sixth of respondents said that before lockdown, they didn’t have any plans to save, while 18% said the pandemic had highlighted that they had no emergency buffer.
- Almost half of those polled said they wish they had saved more money. Just under a third said they wouldn’t spend as much on things they don’t need in future and almost a third saying they will be more conscious of saving money.
- Almost a fifth said they were now saving their money for a rainy day when they had not previously.
Raisin UK co-founder, Kevin Mountford, said: “Lockdown has shifted our outlook on money because, for many of us, our financial circumstances have been forced to change. This has created the perfect opportunity to make long-term changes to our attitudes when it comes to saving and spending.”
Meanwhile, research from the Office for National Statistics (ONS) recently suggested that more than one fifth of usual household spending in the UK has been prevented during the lockdown – money which could instead potentially be saved or used to plug losses in income.
Let us advise you on saving in lockdown
I would encourage you to contact us if retirement is something on your horizon and you are unsure what to do with surplus funds you now realise can be saved. We can talk you through the pros and cons of the various options and come up with a sensibly structured, meaningful plan, putting you in control of your future. Other articles that may be of interest can be found here. Our main office number is 01273 407500, or you can email us on firstname.lastname@example.org
*All data provided by Raisin UK
Whilst we refer to data provided by Raisin UK in this article, this is for information only and is not in any way a recommendation. We advise you to always seek professional help before taking any action where your finances are concerned.