In the run-up to bonus season in the City, Birmingham Midshires asked 2,000 people across the UK whether they had received a bonus over the past 12 months and, if so, how much they earned and what they spent it on.
Almost four in ten (39%) bonus recipients saved all or most of their annual bonus over the last 12 months, whilst an additional 9 per cent used their payout to reduce their mortgage. The study also found that 6 per cent put the money into other types of investments.
British workers collectively took home over £24 billion in bonuses over the past 12 months, with the average bonus amounting to £1758. Whilst the majority of Britons conscientiously saved their payout, a significant number were unable to resist the urge to splurge. Twelve per cent of bonus recipients rewarded themselves with a holiday and a further 11 per cent indulged in electrical luxuries such as i-pods and plasma TVs.
Those in the Midlands and Wales were most likely to save, invest or pay money off their mortgage (64%). The study found that almost half of Londoners (45%) saved their bonus whilst a further 10 per cent splurged on a luxury holiday. Despite the high cost of property in the Capital, only eight per cent used their bonus to pay a lump sum off their mortgage.
Jason Robinson, director of savings operations for Birmingham Midshires, commented: “It’s easy to be tempted to splurge when we get paid a bonus so the fact that more than half are using their extra cash sensibly is great news. You don’t need a huge amount to save or invest so lucky bonus recipients should try to find a healthy balance between rewarding themselves for a year of hard work and squirreling their cash away.”
Regional findings
- Londoners were most likely to receive a bonus (33%) whilst Scots were least likely (22%). Londoners received the highest bonus of any region (£2,770), whilst those in the North of England obtained the least (£1,068), slighltly more than the Scots who pocketed an average £1,197.
- Those in the Midlands and Wales were most likely to save their bonus (50%), followed by Londoners (45%), whilst people in the North were least likely to squirrel their bonus away (28%).
- Scots were more likely than any other region to invest their bonus (21%) whilst Londoners were less disposed to put their hard earned perk into investment products (9%).
- More than one in ten (11%) Northerners used their bonus to pay off part of their mortgage, whilst Scots were least likely to use their money towards property (4%).
- Those in the South of England were most likely to lend some or part of their bonus to friends and family, whilst Londoners were least charitable (4%).
