To think most people have savings...

[mobyduck]

We are not wealthy, we live in a 2-bed semi and run 2 old cars. However, we both keep about £15k to £20k in our (separate) current accounts to take advantage of the 1.5% interest paid (they are 123 accounts).
The money has been saved over many decades (we are both retired now).
I mentioned this to someone in work, recommended it really, but she said no-one she knows has the money to make it worthwhile?
Who is right?

I think most people have savings of some sort, in the sense of not living hand to mouth, but for younger people it's more likely to be a few hundred pounds or a couple of thousand. There are many reasons - some of it is down to people having become adults in an era where borrowing was seen as normal (I'm not moralising, I've had credit cards and loans too), and credit was easy to get. In addition, when the big things seem out of reach, psychologically a lot of people are prone to thinking 'well, what's the point in saving, I'm never going to reach my goals anyway'.

There is also a significant number of people who simply don't have a penny to save, often through no fault of their own.

We have nothing.

I had savings but just used them all to buy a house. Plus side I ahve no morgage but downside is I have no buffer for the next few months until I am in a position to try and save again.
It's hard but I have always tried to save but really struggling now I have a young baby due to childcare costs

We have savings but live in a rented house. We live abroad where renting is secure and house prices to buy are extortionate. If we bought a house we'd have to use all our savings to pay deposit and fees (and live somewhere smaller and crappier but that's not what you're asking). If we did that we'd have virtually no savings, but eventually by the time we're retirement age would presumably have saved again.

So even for people on decentish incomes it depends on life phase. People who own a mortgaged home will tend to overpay the mortgage not save in a savings account and only have a small amount of emergency/ holiday money in savings.

Of course there have always been a significant chunk of the population living pay check to paycheck.

You are as you are because of your age OP. Most people save for a deposit then have no significant savings til the mortgage is paid unless they get an inheritance.

Though I'm puzzled about you suggesting it to someone in work if you're retired...

Littlechocola

Blimey I feel rich! I have £3...

I'm late 20s. I am a saver. And tight. I have some savings but only because I moved back in with my parents to save for a house. When I have a house on my current wage (less than 20k) it will take me about 5 years to save 10k. And that's not including unexpected expenses (like if I had to buy a new second hand car or home improvements or the boiler breaking).

But I have no intentions of needing a house bigger than a 2 bed semi so if and when I earn more I can save less.

Naturally you'll have more savings as you get older because you have had more time to save and are likely to be earning more than in yours 20s.

It varies hugely.

In my early 20s, I had about £45k saved. This went towards a wedding, house deposit, furniture etc.

In my mid-20s, I had no savings and about £14k of debt thanks to mortgage interest rates increases, and a job loss.

Currently mid-30s and have hefty savings again. A lot of my friends are only buying property now, or having weddings, or are in the middle of paying huge childcare costs so I’d imagine a lot don’t have savings, but wouldn’t have had the level of debt I had when I was 26.

Swings and roundabouts really.

I have some savings, about a years salary. This has taken me a lifetime and, ironically, I put most away when I was a single parent getting tax credits and working. That was a good few years ago now but I haven't been able to save since then as salary just covers outgoings.

I have savings and then I have my secret savings. Not really sure what they're for but I like having them. There's a lot more in my secret savings than my savings.

Had savings for a house deposit and bought a flat last year. Had £1000 deposit back from landlord and kept it. Have just booked flights for our 1st holiday (apart from 4 days in Cornwall last year) in 12 years so that has gone too.

So, currently no savings at all. Will now start saving for holiday accommodation

Depends.

I think most of my friends (late twenties/ early thirties) don't have any savings once they have bought their own home. Most of our friends have bought their first small properties in the last few years and so are keeping up with mortgage payments etc. No savings, or not much anyway.

My parents and their friends however all seem to have a lot saved. Can book expensive hols or buy cars at the drop of a hat. I m sure it's easier to accumulate savings once the mortgage is paid and once you reach a steady point in your career.

We have a safety net account with about £2k in it, for 'emergencies' but I wouldn't consider that savings.

anyone paying into a pension has savings even though they don't realize until you retire. In most pension schemes your employer puts in as well so they are also saving for you. When I retired I drew 25% as a lump sum. Not loads because I'd only been in the scheme 10 years. Never had accessible savings when working but try to live day to day without using the lump sum now. Use it for car maintenance, house maintenance, cheap holidays. I live fairly frugally but for the first time in my life nice to have something to fall back on in emergencies.

I think what your friend means that amongst people who do have savings, not many have enough for interest rates to make much of a difference. If you have 2k savings, 1.5% interest in a current account vs 0.5% in a savings account is a difference of £20 a year.
We have a few hundred pounds in a LISA, so technically we have savings but not much!

I have about 2k but I'll need to use some if I book a holiday or for the house this year but I regularly save £100 a month but I'm saving for holidays /new car the house etc .
I used to work with someone who was approaching pension she used to say what's the point of savings which I thought was odd . I'd definitely like to be able to have more savings by the time I'm at pension age . The house will be paid off but tbh I don't really see the point of working my arse off to see the money in the bank , I'd like to enjoy what I have saved .

I had modest savings but three episodes of being a carer in last 10 years have put paid to that. Posted about needing a food bank the other day.

It’s definitely swings and roundabouts across your life.

I'm mid 30s and have always been a saver as has DH so we currently have 9K in savings but I think we are probably unusual in that respect. We could have bought a bigger house/flashier car but I've always wanted to keep money aside 'just in case'. We're careful with money but we've also been very fortunate. I was able to save a lot by living with parents till I was 26 and DH is lucky enough to have a well paid job that allows us to save. We now spend some of our savings on DD or overpaying the mortgage.

I think it’s quite privileged to have savings. I don’t think most people have that much (or even any!). We’re very fortunate we have good professional careers and each got a small inheritance (about £10,000), my dh from his grandad and me from my dad. We’ve invested that and made a real effort to save in the past few years and currently have about £120,000 in investments and savings (from that initial £20k). We’re in our mid 30s with 2 small dc.

I don’t think that’s at all the norm! We do live very simply, even with nursery costs, but have decent professional salaries and no debt. Many people I know are living month to month.

We would have but have had to help my 20 year old through 2 periods of 3 months unemployment in last 18 months and he never received a penny in universal credit/housing Ben and was in a house share. No explanation, impossible to get through to, by the time they said he had an ‘appointment’ he had a new job lined up, Thanks government!!

I can't afford to not have savings. We only save £50 pm, but it adds up quickly and covers things like car repairs, boiler break down, white goods replacement. Things will break and will need replacing. I can't afford to have no buffer.

I am single parent and earn 26k.

I bought a cheap house after my divorce. Anything I might be able to save would need to go on the new windows/bathroom or kitchen.

Unfortunatly with bills, childcare etc there isn't much left over. Even with the very small amount if tax credits I get.

I always put some into savings but something pops up. During this winter it has become apparent my Windows need replacing asap.

A lot of people your age will have made much more money by investing it in a bigger house.

Most retired people I know have savings. Most people my age don’t. Go figure.

This time 2 years ago I had 3k in savings. Then my landlord sold up so they went. I haven't managed to replace them yet. I can afford to save at the moment because I'm a mature student and I'm working in receipt of child tax credit but because I will be worse off under Universal Credit I'm keeping every last penny for the change.
Before I was studying every penny went on bills/rent.

I'd love savings and always was a saver, but theres no way i could now. I barely ever use cash so no saving 'pennies'. As soon as I get anything my car breaks or DD suddenly requires something

i'm in mid 50's and have worked all my adult life. I have about 2.5K saved and that's the most I've ever had.