Britons 'saving more than ever'

Monday, 21 June 2010 10:25

By myfinances.co.uk staff

British households are on average saving more than ever before, with the value of deposits and investments having risen by 305% in real terms over the past 50 years, a new report has claimed.

The study by Halifax showed that in 2009 prices, the value of all savings, including pensions, shares and traditional bank accounts, stood at £993 billion in 1959. Last year, it reached £4,024 billion.

Over the same period, the average value of financial assets per household has climbed by 147 per cent from £59,781 to £147,770.

However, the lender said that this overall rise masks a "large proportion" of British families that have little or no savings.

In 2008-09, over a quarter (28%) of households had no deposits or investments, while 18% had assets worth less than £1,500.

Halifax economist Martin Ellis said the report showed the "dramatic changes" that have affected the savings landscape over the past five decades.

"Economic and demographic developments are likely to encourage households to save more in the coming years," he added.

Recent research by the Fair Investment Company found that 86 per cent of savers were planning to review in light of the UK's record low interest rates, with 78% looking to achieve stronger growth.

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