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16 million have less than £100 in savings

87 replies

Edhilaria · 30/09/2016 19:51

Is this surprising to you? I know loads of people in this situation. Just being nosy really, how much in savings is normal?

OP posts:
SuramarMom · 01/10/2016 19:43

Well of course, what is there to save?

We are a household that is totally reliant on income support and disability benefits now.

Once the mortgage, bills, food and extra things we need re:disability are paid for we are extremely lucky if there is enough left over for maybe a cinema trip.

I guess we could save the pittance left over instead of using it for any leisure activities but then we really would be just 'existing'.

BurnTheBlackSuit · 01/10/2016 19:44

We have no savings, because they are pointless. We are over paying our mortgage with extra money. And the overpayments in the mortgage can be withdrawn if necessary. Better to pay off the mortgage, than have savings sitting in a bank account not earning interest.

fitzbilly · 01/10/2016 19:52

I think for lots of people it's a mindset, they would rather spend than save, because they like buying things or they are bad with money.

I'd rather save, and have a buffer incase of redundancy or illness or other emergencies, than spend it and assume benefits will be available.

whirlygirly · 01/10/2016 20:01

I'm surprised it's such a high number of people. But then, we walked past one of those awful credit shops in town today and they were flogging a £550 tv for about £1200.. pay £7.50 per week for bloody years. It's terrifying that anyone would consider that a good option.

I'm glass half empty when it comes to finances and have just over a year's salary saved up now in case of an emergency. Dp does too. Realising how fortunate we are.

BuggersMuddle · 01/10/2016 21:49

whirly I agree those are an obvious swizz, but for some other things being poor makes life more expensive. Pre-payment meters for one.

The Samuel Vimes boots theory does hold IMO:

www.goodreads.com/quotes/72745-the-reason-that-the-rich-were-so-rich-vimes-reasoned

I have always gone for 'quality' as much as I can afford it and classics for work. I can afford to buy reasonably high end stuff these days and the truth is I don't spend more unless I want to. Obviously if you can't afford that in the first place, you're replacing stuff more often. I actually think the point at which things are 'good quality' is quite high in income terms these days as clothes have become cheaper, but I think quality has suffered as a result. I wouldn't go to Marks for an investment piece, but might have 20 years ago.

Fairylea · 01/10/2016 21:53

We have no savings, and thousands of debt. But we also have a lot of equity in our home and credit cards with 0% interest with lots of credit available for emergencies. I think we are lucky really compared to a lot of people but if dh lost his job we would struggle very quickly. (I am a carer for our disabled son).

cozietoesie · 01/10/2016 22:02

Is that non-mortgage debt, Fairy?

Fairylea · 02/10/2016 00:01

Yes.

BreconBeBuggered · 02/10/2016 01:17

Very little savings beyond pensions here, and tbh they always end up getting spent on stuff like car repairs. We have a decent overdraft facility but try to use cash rather than go into the red. I can't work for health reasons, so we live one one salary, and while comparatively speaking we're not quite on the bones of our arse, there's no real cushion there other than borrowing if things go tits-up. There's some equity in our house but we're talking about an increase of maybe £20k in ten years; most of it is what we've paid off, plus the original deposit. We couldn't downsize to live on the difference for any length of time, even if we moved away.

DustyMaiden · 02/10/2016 01:44

I have savings, they only started to amount to anything when the DC were too old for childcare.

MoominKitten · 02/10/2016 02:53

Melibu 10 years ago in my early thirties, I had nothing. I knew a lot of people who had nothing. I suspect that if you dug into the figures a bit, that study would show that a lot of people in their early thirties now have nothing and a lot then had nothing.

So the headline is a bit misleading. Some people now have less than some people had then, but in both age groups a lot of people have/had nothing. A lot of people in their early forties now still have nothing.

The people who are in their early forties now, also had less in their early thirties than people who are now in their early fifities had had in their early thirties.

I think that 10 years ago, a few people who had gotten onto the property ladder in their 20s, had benefitted from the early noughties house price boom.

It's a lies, damned lies and statistics kind of thing. It's all just a convuluted way of saying "Property was comparatively cheap in some of the 80s and most of the 90s, then jumped in the noughties". People in their 20s/30s in the 80s/90s were better able to save and get on the property ladder than people in their 20/30s in the late 90s/00s/10s because of market conditions. If house prices/mortgages/rents are lower, it's easier to save.

It's still shit though, and it's getting progressively worse, for everyone not on the property ladder, whatever their age.

laineway · 02/10/2016 09:38

It doesn't surprise me at all, I live in a deprived area and most people have nothing and struggle to pay for any extras like school trips. I've always been quite frugal as I've been on benefits or low pay most of my life, and got in the habit of putting something away each week even if it was only a quid. But I've had to be strict with my budgeting and do without a lot of things, cook everything from scratch and walk loads to avoid bus fares etc. Luckily I rent a council flat so we don't have big repair bills to worry about, and I can't afford to run a car so I don't have to worry about break downs. I'm conscious of the benefits limits though so I keep my bank account savings well below that.

dementedma · 02/10/2016 09:44

Doesn't surprise me at all . Dh and I both work and have the princely sum of £700 saved. We have a mortgage and two car loans ( both cars second hand and both needed as we live rurally and both have an hour's commute to work).
This is the most we have ever had in savings and we are in our fifties!

Tropicana1980 · 02/10/2016 10:08

Population of the UK is around 65 million I think so 16 million is around a quarter of the population.
Doesn't surprise me that around 25% of the population have less than £100 saved.

Crispsheets · 02/10/2016 10:13

I have savings, but only because I have moved out of London and bought a house in the north.
It means I can retire at 58 and will have a very comfortable retirement.
But i know lots of people who have no savings and a massive mortgage.

Irush · 04/10/2016 12:32

I did have savings. Then both cars went phut and that was that. Now we don't have any.

cozietoesie · 04/10/2016 14:18

But you can start saving again, lrush? Think if you'd had no savings and the cars had gone then.

maggiethemagpie · 04/10/2016 15:06

I have 2k in savings, but I also have 3k on credit cards so should I take that figure off my savings?

We do have a safety net, DH has a flat in central london (no mortgage) which is basically paying for him to be a SAHD at the moment but if the apocalypse happened we could always rely on it for income.

I used to have no savings in my 20s, I flitted from job to job and looking back sometimes the wolf was quite close to the door but I always seemed to manage and find work when I needed to. I had to take some shite jobs though (beggars can't be choosers) so I wouldn't want to be in that position again.

Myusernameismyusername · 08/10/2016 10:11

I have a pension I opened when I was 17 but I don't know if it is worth much because I worked part time for 14 years while I had kids. I recently got a much better paying FT job so hoping to build up the pot from now on.

I used to have a mortgage with equity but it was sold and debts paid off and I am single parent. My credit rating was ruined by a CCJ I didn't know about in 2012 (sent to an old address for a very petty amount).

I currently have £201 in savings but I will probably have to use some of it to buy food this week.

I have £500 on a credit card for emergencies which I got to avoid using pay day lenders in a panic and I owe my family £3,500 for a car (interest free) although the credit card has a terrifying interest rate I cannot get anything else and can't get an over draft and can't ask family because they helped me with a car which I need for work.

I don't have a phone contract I am PAYG with a 2nd hand phone.

But I feel lucky as I don't have to use food banks and although it's tight I can usually treat my kids now and then and try can have school stuff and I save up for trips.

The one thing we never have is a holiday. With the car and credit card debt I can't really justify wasting £1000 or something silly on a holiday

Myusernameismyusername · 08/10/2016 10:12

I also rent which is part of the killer of most of my income

emilyvg · 28/02/2018 13:35

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bimbobaggins · 28/02/2018 14:56

No. Plus the thread is over a year old

Babyroobs · 28/02/2018 15:14

I wouldn't have a clue how much my friends and colleagues have in savings ! Is it something that people generally discuss? I'm forever seeing people have 3or 4 foreign holidays a year , numerous weekend breaks, day trips , spa breaks. There's very much a ' live for today' culture amongst colleagues so maybe they just spend and don't save.

cozietoesie · 28/02/2018 16:10

I don't think they discuss it - but then I don't think they actually know. I've received the impression that our family youngsters just 'present the plastic' until it says No. ( Then they run to the elders.) They're not into ..........big picture stuff,

Orangecake123 · 28/02/2018 16:49

Yes I'm surprised.I thought that amount would be higher.