Britons are caught in the biggest savings squeeze for almost 100 years, according to finds from Which?’s latest Quarterly Consumer Report.
Which? discovered that people in the UK are saving just 7p in every pound of income – far less than in previous recessions. For example in the 1990s, people saved on average 9p from every pound.
And this rate is expected to drop even further by 2016 to 5p per pound of income, making it even harder for people to build up a safety net.
Action point: Which? Quarterly Consumer Report – read more about our findings
How to beat the savings gap
In times of limited saving, it’s vital that any money you can put away is working as hard as possible. Find out what rate of interest you’re earning on your savings, and if you’re on a low rate, switch to a different provider.
Action point: Savings booster – use our unique tool to find out what rate you’re earning and where you could switching.
Over the past few years, inflation has been the scourge of savers, far outstripping the interest you could earn from savings accounts and cash Isas.
Fortunately, inflation has fallen significantly over the past couple of months and there are plenty of accounts to outstrip inflation, even after factoring in reductions from tax.
Action point: Savings accounts to beat inflation – find out the accounts that can help you beat rising prices.
Have your say on the state of the nation
If you want to know more about the Which? Quarterly Consumer Report and have your say on the state of the nation’s, and consumers’, finances, leave a comment on Which? Conversation.