Post Office marks 145th anniversary of savings

today’s savings behavior compared to yesteryear reveals that we’re saving less than our counterparts did last century.

Overall, one in four (24 per cent) people today don’t save at all and a third (32 per cent) save infrequently. In contrast, 70 per cent of adults play the National Lottery on a regular basis, meaning we’re more likely to play the lottery than save regularly.

The majority of savers (56 per cent) say they are not saving for any particular goal, just “the future”. The single biggest reason for saving is for a holiday (29 per cent).

A third (35 per cent) of 18-24 yr olds are saving for a deposit on a home, while almost half (48 per cent) of those aged 55 – 64 are frantically topping up their retirement savings.

Lack of spare money is the main reason for not saving today (71 per cent). For 27 per cent of people there are just too many debts to pay off, while 17 per cent say they just spend all their money before they can save it.

The Post Office has produced a historic savings time line to chart the UK’s savings habits.

It reveals the savings ratio – the proportion of post-tax income that households save rather than spend – has varied significantly over the years. The highest peak at 12.4 per cent was in 1980 (along with high inflation). One of the lowest periods occurred between 1946 and 1955 during the post war slump when the savings ratio only entered positive territory once (0.3 pct) during Queen Elizabeth II’s coronation.

With the savings ratio now at 2.1pct – its lowest point since 1959 – the Post Office is using this anniversary as a timely reminder for people to remember the importance of saving.

Post Office® Instant Saver, the Post Office®’s instant access account, launched in 2006 and currently offers a rate of 6 per cent. It guarantees to remain within 1.0 pct of the Bank of England base rate for the life of the account.

Instant Saver is available at all of the UK’s 14,000 Post Office branches, by telephone and online. Withdrawals can be made both at branches and ATMs, offering unrivalled choice and convenience.