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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:
Overthebow · 05/09/2023 15:12

AperfectMess · 05/09/2023 14:56

Year first property was bought is also important in this.

No family help to buy a house and bought first one at age 27 in 2015, tiny 2 bed in the south east. Upgraded a couple of years ago to a bigger house.

Happyharry23 · 05/09/2023 15:12

I'm quite young late 20's i have quite a decent sum of savings just saved through the years i have never denied myself or my family anything but i know people are saying about pensions, I do put into a pension dont know how much but I only work 3 days a week as I look after dc the rest of the week! So I don't get a large amount of wages so the money into the pension won't be alot but I don't know if it's just my age but I'm not really bothered about putting loads in my pension? My mindset might change in years to come but I think like we don't know what's going to happen why would I not just take our family on nice holidays we go on about 3 a year we eat out regularly but why would people bundle hundreds into a pension why not enjoy the money when your young enough to make nice memories you could be ill or dead like by 70 and you have hundreds in a pension pot but lived frugally though the best years of your life i honestly don't see the point? People like hurrying to pay of there mortgage but don't get thereselfs nice things? People obviously have different proritys but I just don't see the point in living frugally to have loads in a pension when your 70 and don't have the same mobility as you did in your 30s/40s?

floribunda18 · 05/09/2023 15:12

My mindset was always to buy something nice for myself when someone gave me birthday or Christmas money.

EmpressSoleil · 05/09/2023 15:12

I'm in SH and single (DC grown up) so honestly it isn't worth it for me to have more than £6000 saved. As if I was unable to work for any reason, any amount above that I would be expected to live on until my savings drained down to that. If I have less than 6k my rent etc would be paid by benefits. I imagine some people will think that's bad but I don't really care.

Also being SH, I don't need money for boiler repairs and the like. I don't drive (live in London) so no costs of running a car. I always have enough saved for say a new washing machine or whatever else I might need.

So I keep a couple of thousand for emergencies and the rest I spend. I do have short term savings, like for improvements on the house, holidays, larger purchases. But that's money I save then spend.

I know I'm in for a somewhat frugal retirement. Although it won't be that bad as I've managed on much less in the past. But I am doing all the travelling etc I want to do now and I will be ready for a slower pace of life in my 70s. I'm kind of ready for it now in my 50's 😂so definitely by 70+.

KatnissNeverdone · 05/09/2023 15:15

I'm in my 40s. I have no pension and about £100 in a savings account. I'm an unpaid carer for my son and I imagine there are a lot of people in similar circumstances.

Ragwort · 05/09/2023 15:16

Horsey I don't want to sound defensive but my DH and I absolutely do not have 'final salary' pensions .. we were just really boring and frugal and saved for years. I think it is a mind set as a PP mentioned, we have just always saved .. as does our DS, he has money for Christmas and birthday gifts which he saved rather than buying toys, tech etc over the years. He saved his paper round money & part time earnings. He didn't spend all his money at Uni and works in the holidays .. even managed to set up a little business in lock down washing cars .. & he saved the money Grin. (And no, he wasn't the right age for the child savings gift or whatever it was called).

AperfectMess · 05/09/2023 15:16

@horseyhorsey17 yes some think this generation are somehow inferior, despite alot having 2 jobs or working long hours just to afford food. No way could 1 lowish wage support a family of 4 today debt free with a decent life style.
Getting on the housing ladder in your 30s is a real struggle now. I was lucky me and dh bought ours before the country got even worse. We were fortunate enough to both work full time with low rent, and to be able to save the deposit. We had no where to sell so not ideal, but grateful to be on the ladder. I feel so sorry for those struggling despite working hard, it is very unfair. You worked hard back, and then you reaped the benefits. My parents didn't particularly work that hard either!

AperfectMess · 05/09/2023 15:18

back then*

Checkcurtains · 05/09/2023 15:18

I'm sure that is correct as many people are living fairly hand to mouth

You shouldn't be overpaying on your mortgage with the savings rates as they are right now. Martin lewis has a calculator if you're unsure.

DragonFly98 · 05/09/2023 15:19

Can you explain about the child benefit savings please .

AperfectMess · 05/09/2023 15:20

It's great people can save, live at home, have Christmas and birthday money, can afford to go to uni etc. Circumstance and savings go hand in hand.

Ezzkay · 05/09/2023 15:20

We've dipped into our savings pot for marriage, IVF, and most recently to cover mortgage when I was unable to work due to treatment for an aggressive cancer as my (full salary) sick pay ran out after 6 months. I'm only in my early 40s now, and have been paying into a pension since my mid-twenties. Not sure how we would have coped during my illness without accumulating these savings (equivalent to approx 6 months gross salary) as I am main earner; now I'm back at work I have to concentrate on saving more to top it back up again as I like the security of having it there in case of these kinds of life events.

luckylavender · 05/09/2023 15:21

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.

I bet you know people without savings

luckylavender · 05/09/2023 15:22

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. 🤦🏻‍♀️

Horrible post

Honeychickpea · 05/09/2023 15:23

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.

Thanks for saying buckets rather than pots. I have an irrational detestation for pension "pots", savings "pots" etc.

Original poster
horseyhorsey17 · 05/09/2023 15:23

luckylavender · 05/09/2023 15:22

Horrible post

Show quote history

Mumsnet isn't Mumsnet without a few troll posts!

OP posts:
DragonFly98 · 05/09/2023 15:24

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.

plesse Can you give me some info on the child benefit savings thanks.

DontMakeMeShushYou · 05/09/2023 15:25

Checkcurtains · 05/09/2023 15:18

I'm sure that is correct as many people are living fairly hand to mouth

You shouldn't be overpaying on your mortgage with the savings rates as they are right now. Martin lewis has a calculator if you're unsure.

That really depends on individual circumstances though. For example, we are currently on a variable rate so our mortgage interest rate is currently 7.5%. There's little point in trying to negotiate a new fixed rate as our remaining mortgage is tiny and the fees would easily outstrip any savings we would make. So we're just paying it down as fast as possible.

ElEmEnOhPee · 05/09/2023 15:25

Small amount of savings, on benefits, single parent with no input whatsoever from ex. Live in housing association property. I've only been able to save a little because I don't drive, DS (13) has never been abroad, I buy 95% of clothes from charity shops, a large amount of food I buy is yellow sticker reduced items, I rarely drink alcohol/have nights out and never go to the hair dresser or have nails/eye brows etc done. I'm happy to make sacrifices to ensure I have a bit of money put away.

Thinking of my 3 closest friends, all of whom have partners and work, I am better off than them in terms of savings but not in terms of income. None of them have savings at all and often are panicking towards the end of each month. However, all of them drive, two of them buy nicer clothes, nicer food, have holidays etc so they have nicer "lifestyles" and social lives I suppose but I'd rather have my lifestyle and not have to panic every time a bill comes through the door.
The third is very very similar to me in that they buy from charity shops, reduced food, no beauty treatments/hairdressers etc but has no savings because they've just had shit luck with cars breaking down all the time or boiler breaking, they can't catch a break so every time they just get ahead something else fucks up for them.

All of our age group is 35 - 40

Original poster
horseyhorsey17 · 05/09/2023 15:29

ElEmEnOhPee · 05/09/2023 15:25

Small amount of savings, on benefits, single parent with no input whatsoever from ex. Live in housing association property. I've only been able to save a little because I don't drive, DS (13) has never been abroad, I buy 95% of clothes from charity shops, a large amount of food I buy is yellow sticker reduced items, I rarely drink alcohol/have nights out and never go to the hair dresser or have nails/eye brows etc done. I'm happy to make sacrifices to ensure I have a bit of money put away.

Thinking of my 3 closest friends, all of whom have partners and work, I am better off than them in terms of savings but not in terms of income. None of them have savings at all and often are panicking towards the end of each month. However, all of them drive, two of them buy nicer clothes, nicer food, have holidays etc so they have nicer "lifestyles" and social lives I suppose but I'd rather have my lifestyle and not have to panic every time a bill comes through the door.
The third is very very similar to me in that they buy from charity shops, reduced food, no beauty treatments/hairdressers etc but has no savings because they've just had shit luck with cars breaking down all the time or boiler breaking, they can't catch a break so every time they just get ahead something else fucks up for them.

All of our age group is 35 - 40

I totally respect your decision and admire your commitment to saving - but from a career perspective, getting my hair and eyebrows etc done is an investment. Not the same for everyone! And some people don't need to do it anyway as they are naturally well-groomed and gorgeous - but in my job, being well turned out is expected. I have a work wardrobe as well as my normal one. It all adds up but would cost more if I didn't do it.

OP posts:
Ragwort · 05/09/2023 15:32

It's not strictly true that 'circumstances and savings go hand in hand' .. there is an element of mindset and what your priorities are ... my sibling and I have very similar household incomes (in fact there's is more as they complained when the cut off for Child Benefit was introduced as they no longer received it .. we did), we live in areas where house prices are similar .. we have always saved and lived within our means (absolutely not a joyless existence ... but we are careful in how we spend our income). My sibling and family have a much higher standard of living in terms of holidays, home improvements, cars, tech, eating out, expensive pets, socialising etc ... and yet complain that we are "lucky" to retire early.

To some extent (& obviously not everyone has the choice) people do have different priorities... neither is right or wrong but you have to do what you are comfortable with and recognise that you can make choices ... again, I emphasise that I am well aware not everyone does have a choice.

AperfectMess · 05/09/2023 15:32

@ElEmEnOhPee that's amazing, I admire your post. It has shocked me that somebody on benefits as a single parent can safe anything after costing food down to the last pence.

AperfectMess · 05/09/2023 15:34

'To some extent (& obviously not everyone has the choice) people do have different priorities... neither is right or wrong but you have to do what you are comfortable with and recognise that you can make choices ... again, I emphasise that I am well aware not everyone does have a choice.'

Yes, I agree with your post. I should have made myself clearer when I said "circumstances and savings" as in circumstances with no choice & savings.

Checkcurtains · 05/09/2023 15:34

DontMakeMeShushYou · 05/09/2023 15:25

That really depends on individual circumstances though. For example, we are currently on a variable rate so our mortgage interest rate is currently 7.5%. There's little point in trying to negotiate a new fixed rate as our remaining mortgage is tiny and the fees would easily outstrip any savings we would make. So we're just paying it down as fast as possible.

Show quote history

Correct, hence why I pointed towards a calculator. Most people are not on variable rates.

AperfectMess · 05/09/2023 15:34

save**