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15 Mar 2017

One in four families have just £95 in savings

New research has revealed that around one in four families in the UK have just £95 in their savings and investments accounts, as the gap between low and high earners widens, CityAM writes.

According to a new study by Aviva, the savings gap between low- and high-income families in the UK is growing by 25% each year, up from £50,072 last year to £62,790 in winter 2016/17.

Families on low incomes - those earning less than £1,501 per month - make up around a quarter of UK families, while 8% of families are classed as high income, earning upwards of £5,001 per month.

Worryingly, UK families have taken a blow across the board. Overall savings have fallen to the lowest level in 18 months - the average amount held in savings has fallen from £4,426 to £3,134, the lowest level since 2015.

As well as their savings pots, the study also found that just 41% of low income families own their own homes, compared with 90% of high earners. Overall home ownership is at 64%; the lowest rate in four years.

The average monthly family income has dropped to a two-year low, reaching £2,006.

Contributing factors to this overall decline are thought to be increased financial pressure from stalling wages, combined with fears of inflation.

Paul Brencher - MD of individual protection at Aviva UK - urged the government to swiftly turn its plans into action to “stem the tide of inequality,” while advising families to maintain regular savings contributions and boost their saving pots wherever possible.

Copyright M2 Bespoke 2017

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