On average, Britons are setting aside £92.41 each month, up from £90.12 in winter 2008/09. Those who regularly save are also putting away the largest amounts since the Quarterly Savings Survey began four and a half years ago, £209.23 a month this quarter.
This increase in both key measures of the population's savings comes despite a small drop in income levels over the same period. In fact, across the population, the amount saved as a percentage of income has increased from 6.35% in spring 2008 and 6.48% in winter 2008/09 to 6.83% this spring. The number of people saving regularly has also remained constant for the fifth quarter in a row, with nearly half (47%) of the population setting some money aside each month.
Driving these record savings levels, Britons are setting themselves the highest savings targets since the Survey began in autumn 2004. People ideally want to save £219.11, up from £210.26 last quarter and £195.67 this time last year. This is 16.20% of their average income, compared to 15.13% in winter and 14.99% in spring 2008. People also appear to be keeping more careful control of their spending with a decrease in the percentage of people saying that they overspent each month, 28% this quarter down from 30% in winter 2008/09 and spring 2008.
Dax Harkins, senior savings strategist, NS&I said: "Many of us are cutting back on unnecessary spending and instead are putting a priority on saving, as saving for an emergency continues to be the number one reason for putting money aside. Our survey shows people are setting themselves their highest ever savings targets. However as we've seen previously we are still falling a long way short of our aspirations. One way that people could tackle this is to identify clear goals to save for; at the moment just over a quarter (27%) of those with savings set aside are saving for something specific."
The results show some very positive savings behaviour this spring, with the average amount held in savings up from £17,372 in winter 2008/09 to £18,443. However some people could look carefully at whether they should improve their savings habits. At present, 32% of savers don't think they have enough savings to cope in the event of an emergency; this equates to more than 15 million Britons (15,381,440). It is also important that these levels are maintained. Almost two fifths (39%) of the population said they would be less likely to save in the coming months.
