Saving and investing news

Brits years behind on savings

10 September, 2007

Family Investments research revealed it will take people, on average, 134 per cent longer than they think to save for their individual top priorities.

Consumers told leading Child Trust Fund provider, Family Investments, they are unaware of the time and commitment necessary to save for their top priorities, with 29 per cent thinking it will take 10 years to save for their first home deposit.

With the average mortgage deposit now over £30,000, it will take Brits 24 years to save the amount needed at their current rate.

According to Family’s research the average Brits saves just £1,262 per year. Men take the lead saving an average of £1,537 - £411 more than women who manage to save just £1,126 a year.

Find a best-buy savings account

Children are set to suffer too, with the largest proportion of people questions believing it will take over 10 years to save for their child’s education, but given that schooling from the age of five to 16 currently costs $14,000, it will actually take at least 21 years.

Miles Bingham, managing director of Family Investments, said: “When it comes to prioritising savings, people seem to be focusing on the short-term monetary value rather than the long-term commitment required. As such, they are unaware of the time required to save for their long-term goals.

“Family hopes that the Child Trust Fund scheme will help the next generation approach savings from a different perspective.

“Parents who regularly top up their Child Trust Fund give their children a considerable head start in adulthood. Moreover, if they pass this ‘savings habit’ on to their kids, it will completely change the fortunes of generations to come.”