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Goal-focused savers 'put more away'

Savers who set themselves a specific goal such as buying a house, a car or a holiday put away more than £40 extra a month than those who do not, research from National Savings and Investments (NS&I) has found.

NS&I's Savings Survey revealed that 29% of those who took part in the study managed to set themselves a regular target. They are likely to save 44%, or £42.50, more each month than those who do not, adding up to an extra £500 over a year.

Britons with goals typically set aside almost £139.79 each month, compared with £97.28 saved by those without.

Nearly a fifth of people who gave themselves an incentive set aside more than £250 each month, compared with fewer than one in 10 of those without savings goals.

More than two-fifths of those with a goal (41%) are saving up to buy a house, an increase from 35% when a similar survey was carried out in the previous quarter.

Meanwhile, 37% said they were saving for a holiday or special occasion, and 18% are putting cash aside for a car.

A fifth of those with a goal are squirrelling money aside for their retirement.

But as living costs have risen, savers are putting a smaller proportion of their cash aside each month. They are setting aside 7.49% of their income, down from 8.31% in spring 2011, NS&I said.

A quarter of respondents are saving less than £50 per month and 13% have no savings at all, while a fifth have less than £1,000 put aside.

The NS&I Savings Survey was carried out among 2,580 people.


From Belfast Telegraph