11 million adults (22 per cent) in the UK have absolutely no money deposited in savings, according to new research from Santander Savings.
Over the past year, the average monthly deposit amount has also fallen seven per cent – in 2011, Britons were depositing an average of £112 a month, but that figure that has dropped to the current average of £105.
At £128 per month, male savers are depositing 54 per cent more than females, who are only setting aside an average of £83 each month. Female monthly deposits have also reduced by eight per cent over the past 12 months, compared to a five per cent drop in the average deposit made by male savers over the same period.
Going forward, Britain’s saving habits look set to improve, with 23 per cent of people planning to increase the amount they set aside over the next few months, rising to 43 per cent for younger savers aged 18 to 34.
Matt Hall of Santander said: “The fact that people are saving slightly less this year than last is in-line with expectations, as household budgets continue to tighten but living costs still edge upwards.
“The slight reduction in monthly deposits simply shows that people are managing their money, with a significant proportion of savers planning to increase the amount they deposit over the next few months.
“Our real concern is for people who have no money set aside in savings accounts and for those who have stopped making monthly deposits. We’d urge these people to review their spending thoroughly to identify opportunities to make even the smallest of cutbacks. It’s especially important given the current economic uncertainty that customers have some savings to protect themselves from unforeseen events.”