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Brits failing to save their pennies

Friday November 15th 2013

Over a third of people in the UK are living on the edge by not having an adequate amount of savings to fall back on.

New research from HSBC reveals that around 8.8 million households only have £250 or less set aside as a financial safety net.

A quarter of the population, meanwhile, has no savings tucked away for a rainy day, up from a fifth last year.

The number of households with £250 or less in their savings pots has risen by almost 800,000 since October 2012, when just over 8 million were in the same situation.

Based on average monthly outgoings of £1,500, they would only last five days before running out of funds.

Individuals in the 18-24 age group are the worst off in terms of savings, with a third having nothing whatsoever in reserve and 6% having less than £250 in their nest eggs.

Those aged 35-44, on the other hand, are not far behind at all, with just over a third having nothing in savings and 12% having less than £250. As this age group has greater financial responsibilities, with daily outgoings 54% higher than those aged 18-24, they would struggle, lasting just five days on savings of £250 compared to seven for 18-24s.

Copyright Press Association 2013

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