Britons have trillions in the bank

UK residents have four times more money saved up than they have in debts

Britons 'go back to borrowing'

Hopes that the shock of the recession may have improved people's financial habits have been dented after new research showed that saving levels suffered a "sharp fall" last year as Britons returned to borrowing.
Survey: 56% met 2009 saving goals

Some 56% of Britons met or exceeded the saving goals they set for themselves in 2009, but the number of people not putting away anything for a rainy day almost doubled, according to a new survey.

Wednesday, 25 July 2007 12:00

While mortgage and credit card debt hits the headlines, new figures show UK residents have four times more money saved up than they have in debts.

Alliance & Leicester calculates Britons have a total of £5.1 trillion when savings, pensions, and houses are combined, far outweighing the £1.3 trillion consumer debt.

But the gap between the rich and the poor is rising fast, with UK residents unable to get on the property ladder losing out.

If you add up the value of Britons' houses they are worth a total of £4.3 trillion - the vast majority of the nation's wealth - with another £1.8 trillion squirreled away in pension funds and £820 billion in savings accounts in the bank.

But younger savers - unable to get on the property ladder and without pensions - are feeling the brunt of these debts, with almost three quarters of the nation's wealth in the hands of the over-35s and two thirds of it held by over-55s.

There are also regional differences in the distribution of wealth, with more than half of the UK's wealth (51 per cent) south of Watford, despite only 39 per cent of households living there.

Additionally, more than one family in four (29 per cent) have no savings whatsoever and another two in five (42 per cent) have less than £10,000.

"Britons are increasingly losing the savings habit," said Ewan Edwards, head of savings and investments at Alliance & Leicester.

"Savings inequality grows and grows as we get older. Those able to start young, are likely to continue to grow their savings pot to very comfortable levels, while those who do not are likely to increasingly fall behind.

"Amongst the over 60s, the difference between the 'haves' and 'have nots' is really stark. Half of the over 60s have accumulated on average more than £200,000 in savings and investments to help them enjoy a comfortable retirement. The other half on average has less than £2,000.

"As longevity continues to rise, it is far more important to build savings into our financial planning."

Britons have trillions in the bank

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