NEARLY A THIRD OF PEOPLE IN YORKSHIRE ARE LIVING HAND TO MOUTH

·        Over half of people in Yorkshire fail to save regularly

·        Over a quarter admit to saving less than £25 a month

These are the findings from the Get Saving! report produced by IFA Promotion, the organisation promoting the benefits of local independent financial advice.  According to their research the UK faces a savings shortfall of £66 billion, threatening the future financial security of two thirds of the population.  Broken down, this translates into nearly a third of people in Yorkshire failing to save anything at all in the last three months, supporting strongly the fact that six in ten Britons need to save £2,000 or more a year.

Financial experts recommend that people save at least 10-15% of their pay to secure an adequate retirement income and start pension saving as soon as possible.  More should be saved to ensure they could cope with future financial or lifestyle changes before retirement, and to reduce reliance on diminishing state support.

Whilst a minority of people in Yorkshire (45%) are used to saving regularly on a monthly basis, worryingly over a quarter of people admit to having saved just £25 or less in the last month and under one in ten have managed to put away £1,000 or more in the last three months.

David Elms. Chief Executive of IFA Promotion commented, “The Get Saving! research highlights a stark and very worrying situation that exists in the UK.  Nationally people need to be saving on average an extra £2000 more a year and  people in Yorkshire are no exception – with nearly a third living hand to mouth each month”

Amongst those living in Yorkshire lucky enough to have adopted the habit of saving, more than four in ten save for specific purchases such as a holiday or car, and over a third are saving to provide a safety net for themselves.  However, it is important to note that a third of savers in Yorkshire are happy to be paying into their savings whilst repaying debt at the same time.

Here’s how Yorkshire stacks up against other regions:

Note: sums are quoted with precision but there is some rounding of underlying amounts and percentages, which render them approximate; they may not always add to totals due to the effect of this rounding

Source:  RAKM for IFA Promotion

Elms continued, “While its encouraging to see that some are managing to get into the habit of saving regularly, the facts point to one clear message – millions need to save more for their financial futures and should start off by visiting their local independent financial adviser to talk through their finances.  While the situation is not going to be resolved over night, it’s vital that people start to take this situation seriously, since in ten, twenty and certainly thirty years time, the state won’t be bailing anyone out.  People need to act now – its time to get saving.”

Call 0800 085 3250 in confidence or visit www.unbiased.co.uk for IFA Promotion’s How to Get Saving! factsheet, looking at why we need to save, how much we should be putting away and the range of ways to do so.

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