Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to think most people don't have savings?

366 replies

horseyhorsey17 · 05/09/2023 14:03

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.

OP posts:
AperfectMess · 05/09/2023 14:55

Oh and also if any help to buy house, financial support from family, kids etc

RhiWrites · 05/09/2023 14:55

The system is set up for the poor to remain poor and for the rich to increase their wealth. If you earn over the average it’s easier to save. If you bought a home early in life it’s easier to save. If you have inherited wealth it’s easier to save.

I am not the 1% but all the above is true of me. Bought a house 25 years ago with a £5k deposit from my uncle, who did have inherited wealth. I earn more than the average UK annual salary of £33,402.

I know people who are waaaaaay richer than me (but try to count my blessings compared to those who aren’t) and they have really significant savings of several million. But it’s not from being thrifty, it’s starting off with more.

midgemadgemodge · 05/09/2023 14:56

Premium bonds

Average Prize rate of around 4.6%
So although no guarantees , over time it would be equivalent to a 4.6% internet in a ready access saving account

AperfectMess · 05/09/2023 14:56

Year first property was bought is also important in this.

BIossomtoes · 05/09/2023 14:56

horseyhorsey17 · 05/09/2023 14:40

I am 100% sure none of my mates have a £100K nest egg!

Show quote history

I doubt many people do unless they’ve inherited money.

Original poster
horseyhorsey17 · 05/09/2023 14:58

AperfectMess · 05/09/2023 14:55

Oh and also if any help to buy house, financial support from family, kids etc

In my case - no, none. I have child support from my ex but that's my only additional income apart from what I earn myself. I'd love to be a trust fund babe but I've been supporting myself financially since I was 18.

OP posts:
Original poster
horseyhorsey17 · 05/09/2023 15:00

RhiWrites · 05/09/2023 14:55

The system is set up for the poor to remain poor and for the rich to increase their wealth. If you earn over the average it’s easier to save. If you bought a home early in life it’s easier to save. If you have inherited wealth it’s easier to save.

I am not the 1% but all the above is true of me. Bought a house 25 years ago with a £5k deposit from my uncle, who did have inherited wealth. I earn more than the average UK annual salary of £33,402.

I know people who are waaaaaay richer than me (but try to count my blessings compared to those who aren’t) and they have really significant savings of several million. But it’s not from being thrifty, it’s starting off with more.

Agree. This is where my thread falls down because there's no way of knowing this from the replies.

I've never had any financial support and I earn slightly above the average income.

OP posts:
AperfectMess · 05/09/2023 15:01

'If you bought a home early in life it’s easier to save."

Exactly this, my parents (baby boomers) and most of their friends all benefited from 100 percent mortgages etc, bought their houses young, wage wasnt lower thab inflation, and consequently had a very low mortgage earlier in life, they sold before the economic crash, and cashed in. This was on one low wage supporting a family of 4 with a fair lifestyle If you're buying property now in your 30s with nowhere to sell, for most it isn't going to be a walk in the park (if you can even get on the housing ladder in the first place without outside help).

SocksAndTheCity · 05/09/2023 15:02

I did have savings, but Covid and not being able to work at all/very much for months saw off most of it.

Now I have a pension worth not much because I had to freeze payments so I could clear the resulting debts, and I've just managed to cobble a cash ISA together this year. So whilst I'm not quite penniless, it would only take one real disaster and I'd be fucked.

Cowlover89 · 05/09/2023 15:04

I have a savings. Not loads but always been good with money and won't touch it unless emergency

AperfectMess · 05/09/2023 15:04

@RhiWrites I completely agree that in most cases it is starting off with more. It is refreshing to hear, my parents and alot their age think they had it harder or the same 😡

floribunda18 · 05/09/2023 15:04

I've had premium bonds since 1975 and have never won anything.

Hanhan28 · 05/09/2023 15:05

I’ve used Plum to create savings as I don’t notice it coming out of my account. Think I’ve saved well over £1000

Original poster
horseyhorsey17 · 05/09/2023 15:05

AperfectMess · 05/09/2023 15:04

@RhiWrites I completely agree that in most cases it is starting off with more. It is refreshing to hear, my parents and alot their age think they had it harder or the same 😡

And that they worked harder.

OP posts:
Rewis · 05/09/2023 15:05

I have a savings account that hat £x. And if I use it then I'll top it up by reducing spending or putting less to other accounts.

Then I have a down payment account where i put £x monthly and I can't take it out until I get a house. If i never get one then I need to empty the whole account.

Then I have my investments where I put money in and that's for my pension and old age and potential kid related expenses and I don't touch these.

Then I have my travel account piggy pankhurst which is a microsaving account where £2 gets transferred everything I use my debit card. This is for my travels.

So basically I have one saving account where I can take money when needed and then I have savings that i don't touch. I have a direct debit to these accounts on payday and if I have extra at the end of the month I put them in investments savings account.

I preferred having some savings but I'm not too intense with the amount I save cause I also want to do fun things. But I make sure I save every month.

PinkRoses1245 · 05/09/2023 15:07

We only have savings for short time things like annual bills (car insurance etc) and house renovations. Nothing bigger or long term, we both have workplace pensions. I don’t really see the point in saving for the sake of it - as you say, you can’t spend it when you’re gone!

floribunda18 · 05/09/2023 15:07

If I had saved to pay off my mortgage, it might make more sense financially but it doesn't work psychologically for me, as I'd rather see the mortgage balance reducing, and likely I'd have spent the savings on something else.

AperfectMess · 05/09/2023 15:07

*'Cowlover89 · Today 15:04

I have a savings. Not loads but always been good with money and won't touch it unless emergency.'

I don't think being good with money is just it though, that insinuates that everyone without savings isn't. I know plenty of people who are meticulous with money yet have no savings due to the shit economical state they have come of age in.

MidnightMeltdown · 05/09/2023 15:08

AperfectMess · 05/09/2023 14:54

It would be interesting to know the age bracket those with and without savings fall into.

I'm in my 30s and have a mortgage, savings and pension. I started saving as soon as I got my first part-time job at 16.

I worked after school and during the holidays and saved around 5k before going to uni. I've never not had savings since my first part time job

I think it's a mindset more than anything else. Wanting to make sure that I always have a safety net.

Ginmonkeyagain · 05/09/2023 15:09

I think it is a combination of luck, circumstances and mindset. I don't come from a very well off family (no help to buy a property, no big inheritance pending). But I have got a fairly well paid uncle and he used to give us all £50 each at Christmas when we were kids I always stashed mine in to my savings. Same when I inherited a modest sum (£2000) when my gran died when I was i my twenties.

My mindset is also no debt (apart from mortgage) so I always use savings for things like holidays, new kitchen, new bathroom etc..

Bagwyllydiart · 05/09/2023 15:10

I have always saved, even if was only a fiver a month.

Auntieobem · 05/09/2023 15:10

Lots of people have lots of savings, lots of people have none.

We have just over £100k in savings, as well as pensions. We just spend well within our means. Don't have it earmarked for anything in particular. It's just there.

Bigcat25 · 05/09/2023 15:10

Nothing wrong with paying off the mortgage early! That's wise. We only bought our home 2.5 yrs ago. Everyone has their own risk comfort zone. Personally I would want emerg/repairs savings before I did that though. We are behind in retirement (in Canada) and don't have pensions.

The only thing is if you're paying credit card interest - that is obviously a higher rate than what you'd save with extra mortgage payments.

Hillary17 · 05/09/2023 15:11

I have both but only from inheritance. Pay 5% into my pension and have £37K in savings.

MrsJBaptiste · 05/09/2023 15:11

We have savings and have a spreadsheet with several columns which we pay into each month (University accommodation, mortgage payments, holidays, general savings, etc.) and we spread our savings across them all. We move money into our savings as soon as we get paid - never at the end of the month as there would be a lot less left by then!

We’re lucky and bought our first house 25 years ago for a pittance, refurbished it (slowly as we didn’t have much money) and are now mortgage free. However we still save the mortgage money (£1000) per month for the future as if we get used to spending it, we’ll never get that money back.

We’re both very careful with money and I’m very much a saver but not to the point of missing out on things, just making sure we don’t live beyond our means.