Savings rates in the UK have risen despite the ongoing recession and it is younger adults who are saving the mots, according to the latest Quarterly Savings Survey by National Savings & Investments (NS&I).
Brits are now saving 7.17 per cent of their income each month, equivalent to £90 a month in real terms.
The level of savings represents a turnaround in savings levels since the last quarter, says NS&I, when savings levels fell to 7.08 per cent, their lowest level in more than a year.
Scotland is saving above the national average at 7.35 per cent of total income. However, they are behind the Welsh who are saving 7.70 per cent.
In England, residents in East Anglia have significantly raised the amount they save from 5.49 per cent to 7.74 per cent, up from £68 to £90 a month over the last quarter.
The research indicates that it is women and people in their late twenties and early thirties who are driving the extra levels of savings.
This segment of the population is saving a lot more than the national average. They are putting away eight per cent of their monthly income, £103 a month.
Women are saving more than men, an average of 7.65 per cent of their monthly income, compared to just 6.82 per cent for men.
NS&I’s research reveals that having a specific aim of what savings are for is a motivating factor behind the success young adults are having in saving more money.
45 per cent of 25-34-year-olds are using goals or aims to motivate themselves, compared to just 27 per cent of the population as a whole. This trend is accentuated in females, with 50 per cent of women aged 25-34 using goals to help with saving compared to 41 per cent of men in the same age range.
John Prout, NS&I Retail Customer Director said: “It is encouraging to see this improvement in savings over recent months, and it’s particularly good to see such motivation from younger people.
Setting goals is an effective way to get into a regular savings habit. Not only do they encourage people to stay motivated to save, they provide a real sense of achievement once a goal has been reached.”