One in five failing to put cash away for a rainy day
THIS year’s How Scotland Lives survey, commissioned by Bank of Scotland, suggests that 20 per cent of us have no savings at all, while one-third admit that we have insufficient savings for the future.
The researchers questioned more than 2000 people right across the country to find out more about the issues that really matter to those living here, including housing and happiness, as well as money.
Almost half of those who don’t have any savings at all say that they can’t afford to save.
More than 10 per cent reckon that there are always other priorities.
Another 10 per cent said that their focus is always on the short-term and they can’t therefore think about long-term savings.
Of those who are saving, more than one in 10 are just saving towards a short-term goal, such as a holiday.
The same proportion are saving only for the long-term, for example a secure retirement.
More than a third say they are saving for both.
Twenty per cent of Scots say they are definitely not saving enough to meet their long-term needs, while nearly one-third say they are saving enough or more than they need to.
A secure future and a comfortable retirement are at the top of the list when it comes to respondents’ main priorities, and most of those questioned like the idea of building up an emergency fund.
The research also found that people in Glasgow are saving the least – with more than a quarter saying that they do not have any savings at all to their name.
Worryingly, given the information across the page today, almost one in 10 of those questioned aged between 18 and 34 feel that they do not have anything to save for in the long-term.
Bank of Scotland director Mike Moran said: “Our research suggests that many Scots have literally nothing to fall back on if they were to get into financial difficulties.
“It’s recommended that everyone has three to six months’ wages in savings, just as a back-up in case something unexpected happens.
“Opening a savings account and setting up a direct debit can be a good first step towards achieving your savings goals and it’s surprising how quickly savings can grow.”