Savers forced to dip into funds

A SIGNIFICANT number of people are now accessing their savings on a regular basis in a bid to cover lost earnings.

Moreover, the use of those savings has also changed – with more people now dipping into their savings to cover essential costs of everyday living, rather than previous top-choice uses like holidays and travel.

More than 40% of respondents to a new consumer savings sentiment research survey – carried out by the EBS Building Society – said they have begun to use their savings to compensate for falling income levels from work. “Aquarter of those who have dipped into their savings are claiming to have used those savings for general living expenses. This research demonstrates a shift in how people are using their savings.

“The concept of saving now for what you might need in the future is well established.

“What the research is telling us is that many people are finding that the day when they need to be able to fall back on their savings has arrived now,” according to Aidan Power, head of marketing at EBS.

As much as 33% of respondents to the new survey – the results of which were published yesterday – said that they typically dipped into their savings every two-to-three months. This statistic has risen by as much as 25% since the last edition of the survey, back in January.

“The importance of having savings to hand is demonstrated by the growing numbers of people who are dipping into their savings on a regular basis. This underscores the need for people to have a savings product that is best suited to them and their current needs.

“We’ve found that many people haven’t reviewed their savings products in some time, despite huge market changes in recent months,” Mr Power added.