Fewer saving as confidence falls

Published on Wednesday 4 August 2010 16:21

SAVERS have been putting less money aside amid plummeting confidence in the economic outlook.

Fewer people saved regularly in the three months to the end of June than in the previous quarter, while the number of people who did not save at all increased, according to the latest Nationwide savings index.

The number of people who said they were saving less was up marginally to 62 per cent.

The building society said Britons felt increasingly pessimistic about their chances of saving, with 21 per cent expecting to save less in six months' time than they do now, up from 18 per cent in the first quarter.

The index supported a recent Scottish Widows pensions report that found that the number of people saving adequately for their retirement had fallen to its lowest level since 2006.

However, just a third said they felt government policies discouraged them from saving, the lowest level since the savings index began in 2008.

Robin Bailey, savings and investments director at Nationwide, said: "This fall in consumer confidence could reflect a general lack of confidence in the economy, meaning some people will feel they have less spare cash to save.

"We know, for example, that around half of all consumers believe that it is a bad time to save given the current economic situation."