Over-50s hit as consumers saving less

CONSUMERS are saving less with the over-50s finding it especially difficult to put money away.

Nationwide’s UK/Ireland ESRI savings index declined by six points last month to 105 as divergent concerns temper attitudes towards saving.

The Savings Attitude sub-index declined by five points in August to 94, primarily driven by the over-50 age group who showed a more negative attitude towards the amount they are able to save.

The overall percentage of people who feel they are saving less than they think they should rose by four percentage points to 56%. However, this overall position includes a 10 percentage point increase among over-50s, compared to no change among under-50s.

Regular saving has increased among under-50s from 38% in July to 43% in August, while no similar increase has been recorded among over 50s. Just 49% of the over-50s group think that it is personally important to save, compared with 70% of the under-50s.

Managing director of Nationwide UK/Ireland Brendan Synnott said: “The decline in the index this month is welcome from a wider economic perspective. It provides some evidence that the anxiety amongst consumers which was apparent earlier in the year has eased somewhat. The index is still trending above 2010 levels so there is a long way to go before we get back to normal saving and spending patterns.”

The Savings Environment sub-index also declined by seven points in August to 117. A six percentage point decline in the number of people who think that now is a good time to save is being primarily driven by those aged under 50.

When asked what they are saving for, the highest proportion of people, 41%, indicated that they are saving for unexpected expense, with a further 12 % saving for education/training.