Savings can help to protect people from financial shocks but people have been saving less and less of their incomes over the past few years.
6.1 The amount of people saving from their incomes remained at a very low rate in 2018, half the level it had reached in 2015.
6.2 According to the Office for National Statistics, more than half (53%) of 22-29-year-olds had no money at all saved in a savings account in 2014 to 2016, compared with 41% in 2008 to 2010. However, those who did, had an average of £1,600 saved, up from £900. Thus inequality of savings is increasing within this age group.
6.2 According to the OECD, the UK’s household savings rate is lower than the EU (28) average and far lower than many of our largest and closest Western European neighbours.
Source: OECD definition and data