Post Office: Rising living costs make saving difficult

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Post Office: Rising living costs make saving difficult

Fri 28th Mar 2008

As living costs continue to rise fewer people are able to put away money for a rainy day, according to a new study by the Post Office.

Some 4.8 million people cited increases in day-to-day living costs as the main reason why they are unable to make regular savings contributions, with 49 per cent of those saying they simply do not have any spare cash at the end of the month to save.

It also found that growing numbers of people are 'bouncing' - withdrawing the money they have put into a savings account before the end of the month. Of those surveyed, one in five admitted to bouncing every month.

Richard Norman, director of savings at the Post Office, advised: "In times of economic uncertainty, it's more important than ever to try and put money away."

Research released earlier this week by Nationwide found that over half of the people it spoke to would like to save more but do not have enough money to do so, while ten per cent feel they are currently putting away the right amount.

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