A survey by insurer Royal London has found that people in the UK are now saving even less. The survey revealed that the average amount saved per household in the UK had fallen from £358 pm in May 2002 to £203 pm in December 2002. This fall of 40% is appalling considering the amount of coverage given by press, media and the Government as to the need for people to avoid the poverty trap in retirement.
Our view:
It is perhaps understandable that people have moved away sharply from saving regularly given the volatile markets and low interest rates. However, many of you may not have heard of the benefits of 'pound cost averaging' i.e. that a falling market can actually be good for you savings.
Take a look at our feature "The Market's Gone Down - Is this Great News for Regular Savers".