A quarter of Britons have no savings

ONE in four Britons has no savings, while another third has less than three months take-home pay set aside.

As a result, a fifth are concerned about how they will cope in their retirement, it emerged yesterday.

Half have personal debt – up slightly in a year, research by the finance firm ING for the sixth annual savings survey shows.

The survey looked at the financial habits of nearly 15,000 people in 15 countries in Europe, Australia and the US. In Britain, 24 per cent have no savings – a tally that rises to 29 per cent for the survey as a whole.

Compared to the rest of Europe, Britons are more likely to have debt and savings at the same time. Some 32 per cent are saving less or using their savings to pay bills.

Researchers said rock-bottom interest rates were stretching finances to breaking point, with low returns on savings making many consumers angry. Across Europe, 20 per cent said they couldn’t meet their savings goals. In contrast, just 7 per cent believe low interest rates have improved their finances.

ING economist Ian Bright said: ‘Lowering interest rates is a widespread technique for trying to stimulate spending in the economy – but it also has an effect on people’s savings.

‘People across Europe are feeling the strain of continued low interest rates – and losing motivation to save.’