to think most people don't have savings?

horseyhorsey17 · 2023-09-05T13:03:20+00:00

I realise this is going to get a whole range of different views and experiences and I am interested to hear them all, but I recently read some research saying that most families in the UK have less than £600 in savings. This got me wondering - I am a single mum with two teens and a mortgage, and I don't have savings as such but I do have a private pension (had it for nearly 20 years now) that I pay roughly 5% of my salary into (as well as a work pension) and I overpay on my mortgage. I consider this a more effective use of my money than saving, which I can't afford to do as well. Do most people have pensions AND savings? Or neither? Just really curious as I spend my salary every single month and all my friends do the same. That might be just my peer group! I suppose I could save if we never went on holiday - but I'd rather have the holidays tbh. You only live once and you can't take it with you, etc etc.

MarshyMcMarshFace · 05/09/2023 14:06

I’ve never been rich but always tried to have rainy day savings available for a new boiler, etc,

It’s great to save into your pension but not if you have to wait till you are 57 to get a big roof repair.

pbdr · 05/09/2023 14:08

It very much depends on what section of society you are looking at. I don't know whether it would be an overall majority, but certainly all of my friends and family have savings, and would typically forgo holidays etc if needed to ensure they kept a savings buffer for emergencies. I couldn't sleep at night if I was one broken boiler or unexpected bill away from financial trouble. That's a sad reality for many who live on the breadline and cannot afford to save, but I can't imagine trading that security for the sake of a foreign holiday.

CatsOnTheChair · 05/09/2023 14:09

I'd say you are saving. Just not into an instant access savings account. You are saving into a pension, and into the house. If you had to cut back spending there are 2 really easy cuts that you can make without impacting your (current) ability to spend day to day.

Bananas1350 · 05/09/2023 14:10

I have three different types of savings. I have one for long term. This sits in un used and is only For emergencies only. Never had to use it yet.

then we have the general savings. So when that gets to a certain point we Chuck it in long term savings. But that is there if we need emergency dentist etc. And I have another pot for things we are saving up for. We need a new dishwasher. So I’m putting aside money for that. We also both have a pension

edwinbear · 05/09/2023 14:10

I have savings and a pension - I pay 6%, employer pays 10.5%. I'd also feel very exposed without savings, mainly because DH and I both work in finance where jobs aren't terribly secure, so like to be sure we have a back up in case one of us loses their job.

Original poster

horseyhorsey17 · 05/09/2023 14:11

pbdr · 05/09/2023 14:08

It very much depends on what section of society you are looking at. I don't know whether it would be an overall majority, but certainly all of my friends and family have savings, and would typically forgo holidays etc if needed to ensure they kept a savings buffer for emergencies. I couldn't sleep at night if I was one broken boiler or unexpected bill away from financial trouble. That's a sad reality for many who live on the breadline and cannot afford to save, but I can't imagine trading that security for the sake of a foreign holiday.

I would just put that on a credit card then pay it off the next month/few months.

Just to add - I don't live a wild and crazy lifestyle or go on madly expensive holidays! We have a summer holiday abroad and a few camping trips and so on, eat out occasionally, takeaways maybe twice a month. Shop in Aldi. I'm not living high on the hog but I have quite an average salary and it all goes!

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LegendsBeyond · 05/09/2023 14:11

Everyone I know has savings. We have good pensions, but still save into ISA’s & premium bonds. I like to have access to cash savings in case I need them for an emergency.

Original poster

horseyhorsey17 · 05/09/2023 14:11

CatsOnTheChair · 05/09/2023 14:09

I'd say you are saving. Just not into an instant access savings account. You are saving into a pension, and into the house. If you had to cut back spending there are 2 really easy cuts that you can make without impacting your (current) ability to spend day to day.

This is how I look at it.

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midgemadgemodge · 05/09/2023 14:12

Around 23% of people don't have any savings

It's easily looked up and will be more accurate than a random internet sample

fourelementary · 05/09/2023 14:12

A pension is a type of saving… and Id imagine most people have some kind of savings on top of that- for repairs or household stuff etc. and if they don’t they’ve no business going on holidays or vaping or smoking etc and yet I bet many of them do- which is why they’ve no savings. 🤦🏻‍♀️

Original poster

horseyhorsey17 · 05/09/2023 14:12

Forgot to add - I have ISAs for both kids I pay into monthly. So I am saving for them because uni etc will be pricy.

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CrunchyToes · 05/09/2023 14:12

I have a pension through work and I too just live month to month on a my wage.
I currently have £100 in my savings account, I will put another £100 into that when I get paid at the end of this month and that is earmarked for the decorator so will be gone on one fell swoop.
I'll probably put the same in each month after that but I just can't help but spend it if I know it's there.
I am not very financially responsible to be honest.

Original poster

horseyhorsey17 · 05/09/2023 14:13

midgemadgemodge · 05/09/2023 14:12

Around 23% of people don't have any savings

It's easily looked up and will be more accurate than a random internet sample

I know but I am really interested in hearing how other people do it - maybe get a few tips.

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Original poster

horseyhorsey17 · 05/09/2023 14:14

CrunchyToes · 05/09/2023 14:12

I have a pension through work and I too just live month to month on a my wage.
I currently have £100 in my savings account, I will put another £100 into that when I get paid at the end of this month and that is earmarked for the decorator so will be gone on one fell swoop.
I'll probably put the same in each month after that but I just can't help but spend it if I know it's there.
I am not very financially responsible to be honest.

I admire your honesty though!

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beeswaxinc · 05/09/2023 14:14

In terms of savings that I could draw down from if an emergency cropped up or I was struggling then no, I have absolutely nothing.

The closest thing is my child benefit saving loan which I draw from periodically for Christmases and tighter months like over the summer hols but this requires an application to do so each time.

I definitely do not have my own savings pot and live month to month. I often feel isolated in this but read that statistically this is the case for a lot of people.

If you count pensions yes I do pay into a work place pension but I'm not yet 30 so that money feels highly theoretical to me.

PRAMtran · 05/09/2023 14:15

I think it depends at what life stage you are at. I had no savings and was broke with young children and a new mortgage. Decades later kids have their own money and I’ve started to make savings

TheClitterati · 05/09/2023 14:15

How do you go on holidays? Do you save for them or put on CC and pay them off?

I do have some savings - Like you I overpay on my mortgage and pay into a pension. I have an Emergency buffer, and then I save for holidays etc. I probably have 3 months salary set aside.

If I want something I save for it. So I save, and then I spend.

I want to take DC to Japan in 2025 so I am saving for that now.

Original poster

horseyhorsey17 · 05/09/2023 14:15

PRAMtran · 05/09/2023 14:15

I think it depends at what life stage you are at. I had no savings and was broke with young children and a new mortgage. Decades later kids have their own money and I’ve started to make savings

I've done this too. I did have some savings but spent them all moving when me and ex-husband separated last year.

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Original poster

horseyhorsey17 · 05/09/2023 14:17

TheClitterati · 05/09/2023 14:15

How do you go on holidays? Do you save for them or put on CC and pay them off?

I do have some savings - Like you I overpay on my mortgage and pay into a pension. I have an Emergency buffer, and then I save for holidays etc. I probably have 3 months salary set aside.

If I want something I save for it. So I save, and then I spend.

I want to take DC to Japan in 2025 so I am saving for that now.

A mix of both tbh. Or pay for flights one month, half the accomodation the next etc, and then put spending money aside each month.

I would love to do something like your Japan trip with my kids - I am thinking Nepal. Have an amazing time!

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beeswaxinc · 05/09/2023 14:17

PRAMtran · 05/09/2023 14:15

I think it depends at what life stage you are at. I had no savings and was broke with young children and a new mortgage. Decades later kids have their own money and I’ve started to make savings

I'm hoping that's the case, we are very much in the young children phase of life and I am only recently out of all the mat leave and part time working patterns that people with pre school age DC often juggle.

Ragwort · 05/09/2023 14:17

I don't really know because it's not the sort of thing I would ask people, but in my circle plenty of people seem to be able to retire early so I assume they do have savings. I would always have savings and I prioritise savings over holidays, meals out, takeaways etc . This has enabled my DH and I to pay off our mortgage early and retire before state retirement age.
One of my siblings has always been a saver and has also managed to retire early .. the other has lived (what I consider) an extravagant life style, plenty of holidays, moving every few years, the latest tech etc etc ... and has no chance of retiring early ... but maybe they just prefer that lifestyle?
I would always be anxious about putting things on a card and 'paying off next month' ... what if you lose your job or become too ill to work?

Original poster

horseyhorsey17 · 05/09/2023 14:19

Ragwort · 05/09/2023 14:17

I don't really know because it's not the sort of thing I would ask people, but in my circle plenty of people seem to be able to retire early so I assume they do have savings. I would always have savings and I prioritise savings over holidays, meals out, takeaways etc . This has enabled my DH and I to pay off our mortgage early and retire before state retirement age.
One of my siblings has always been a saver and has also managed to retire early .. the other has lived (what I consider) an extravagant life style, plenty of holidays, moving every few years, the latest tech etc etc ... and has no chance of retiring early ... but maybe they just prefer that lifestyle?
I would always be anxious about putting things on a card and 'paying off next month' ... what if you lose your job or become too ill to work?

I've always wondered how people retire early! I guess it is the last of the final salary pensions, which haven't really existed since I've been in the workplace. You need a pension pot of at least £300K now to retire - I'll be lucky to retire at 70!

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Overthebow · 05/09/2023 14:20

We have accessible savings to equal 6 months income, the bulk of our savings is invested and then we have private pensions and overpay the mortgage each month. We have a relatively high joint income and to be honest spend on simile things to you with one weeks main holiday a year then smaller long weekends, two takeaways a month, family days out etc.

Thepeopleversuswork · 05/09/2023 14:21

I have different "buckets" of savings:

One is for very long-term stuff such as my daughter's university fund and is in stocks and bonds so I can't touch it without notice
One is what I call my "fuck off fund", which is emergency money I might need if, for example, I had to pay to replace a boiler or if I got fired from my job.
And I have a very short-term "slush fund" savings which I use if I need to top up my current account (and to pay for things like holidays or credit card bills)

The long-term fund is never touched (hopefully). The fuck off fund has only been touched once but is quite small as I can't afford to add much to it but it's better than nought. The "slush fund" fluctuates wildly: I iput my bonus into it at the start of the year so it can have a couple of grand in it but by the end of the year it has usually dwindled to nothing.

Sugarfree23 · 05/09/2023 14:22

It's easier to have savings if you've got two incomes and have managed to dodge student loans.

DH & I have savings but have both worked, since we were 17 starting in apprenticeship roles. My first job was £4,000 a year. In fact at the time I kept on my schoolkid Saturday job too.

But the we are probably more frugal than we need to be, except holidays.