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Scottish Widows survey: Bleak picture for savings
http://www.x404.co.uk/forum/viewtopic.php?f=19&t=18431		 Page 1 of 1
Author:  Amnesia10 [ Mon Feb 25, 2013 5:41 am ]
Post subject:  Scottish Widows survey: Bleak picture for savings
A third of Scottish adults are not making any effort to save for the future, according to a survey by Scottish Widows.

Quote:
Its annual savings and investment report also suggested that one in five Scots had no savings at all.

Scottish Widows said it painted "a bleak picture" of people's ability to cope with financial shocks that could hit now or in the future.

The online survey was carried out on behalf of the pension firm by YouGov.

It found that 63% of Scots were managing to put something away, while 35% had a total savings pot of less than £1,000.

In addition, 17% of those who expected their financial priorities to change were seriously concerned about job security in the coming year.

The survey also indicated that nearly a third of Scottish respondents with families had loaned "a substantial amount" to their children, often to simply help them meet daily living expenses.

Support was also being provided for higher education and property purchases, with Scottish parents giving an average loan of almost £14,000.

I suspect that for most it is a matter of not having enough spare income to save.
Author:  davrosG5 [ Tue Feb 26, 2013 11:09 am ]
Post subject:  Re: Scottish Widows survey: Bleak picture for savings
Indeed. You can't save what you don't have.
I suspect the pattern will be pretty similar across most of the country, not just in Scotland.
Author:  finlay666 [ Tue Feb 26, 2013 12:27 pm ]
Post subject:  Re: Scottish Widows survey: Bleak picture for savings
davrosG5 wrote:
Indeed. You can't save what you don't have.
I suspect the pattern will be pretty similar across most of the country, not just in Scotland.


There is also the matter of debt, most cases it's better to eliminate the current debt (credit cards etc) than to save money because of the interest rates.

I'm working on clearing all my important debt first, things like student loan/mortgage aren't important over anything else, then it's savings. Like you said it's hard to save when:
1. You don't have any spare to save
2. Interest rates determine it not worth the time to save
Author:  hifidelity2 [ Tue Feb 26, 2013 12:52 pm ]
Post subject:  Re: Scottish Widows survey: Bleak picture for savings
davrosG5 wrote:
Indeed. You can't save what you don't have.
I suspect the pattern will be pretty similar across most of the country, not just in Scotland.

I know what you mean, Once I have paid for my Fags, booze and nights out and paid off some of the credit card debt I ran up on my 3 holidays I don't have anything left over for savings :)
Author:  Amnesia10 [ Tue Feb 26, 2013 1:47 pm ]
Post subject:  Re: Scottish Widows survey: Bleak picture for savings
That is probably the case for most of the population. When you consider that many people are literally one pay cheque from disaster it makes it hard to save. They need to clear their debts but the problem is that unless you are close to clearing debts you will be in trouble for a long time. Wages are stagnant for most people and if interest rates rose many would probably lose their homes.
Author:  l3v1ck [ Tue Feb 26, 2013 3:19 pm ]
Post subject:  Re: Re: Scottish Widows survey: Bleak picture for savings
Quote:
1. You don't have any spare to save
2. Interest rates determine it not worth the time to save

You need some sort of savings for a rainy day even if the rates are terrible. It was a good job I had savings when I lost my job. I've spent the last three years building them back up in case it happens again.
Author:  Amnesia10 [ Tue Feb 26, 2013 4:23 pm ]
Post subject:  Re: Re: Scottish Widows survey: Bleak picture for savings
l3v1ck wrote:
Quote:
1. You don't have any spare to save
2. Interest rates determine it not worth the time to save

You need some sort of savings for a rainy day even if the rates are terrible. It was a good job I had savings when I lost my job. I've spent the last three years building them back up in case it happens again.

Yes but you can always have an overdraft facility for emergencies until you are debt free. If you do not need it immediately then it is only reducing your ability to pay down debt. I have had a overdraft facility for years but never used it. It was just in case there was an emergency.
Author:  l3v1ck [ Tue Feb 26, 2013 7:54 pm ]
Post subject:  Re: Scottish Widows survey: Bleak picture for savings
Dear bank manager. I've just lost my job. Please let me over draw £1500 ish a month for the next six months as I spent all my savings on mortgage overpayments.

Can't see that happening.
Author:  Amnesia10 [ Tue Feb 26, 2013 8:38 pm ]
Post subject:  Re: Scottish Widows survey: Bleak picture for savings
l3v1ck wrote:
Dear bank manager. I've just lost my job. Please let me over draw £1500 ish a month for the next six months as I spent all my savings on mortgage overpayments.

Can't see that happening.

Yes but if that happens do you have £5000 to get you through the next few months? In reality if you did lose your job then you would get unemployment benefit and housing benefit which might cover a large proportion of your outgoings. So you might need something to keep you going until that actually arrived.
Author:  JJW009 [ Wed Feb 27, 2013 10:49 am ]
Post subject:  Re: Scottish Widows survey: Bleak picture for savings
Amnesia10 wrote:
In reality if you did lose your job then you would get unemployment benefit and housing benefit...

Housing benefit is means tested. You don't get it if you have savings.

I know benefits are there to stop people becoming homeless and starving, but it did slightly annoy me that I'd have been "rewarded" if I'd spent all my income on drugs and whores instead of saving.
Author:  l3v1ck [ Wed Feb 27, 2013 12:15 pm ]
Post subject:  Re: Re: Scottish Widows survey: Bleak picture for savings
Amnesia10 wrote:
In reality if you did lose your job then you would get unemployment benefit and housing benefit which might cover a large proportion of your outgoings. So you might need something to keep you going until that actually arrived.

Bull. I got something like £50 per week. You get jack [LIFTED] if you have a partner. The fact they earn a pittance seems to be irrelevant.
Author:  finlay666 [ Wed Feb 27, 2013 2:11 pm ]
Post subject:  Re: Re: Scottish Widows survey: Bleak picture for savings
l3v1ck wrote:
You need some sort of savings for a rainy day even if the rates are terrible. It was a good job I had savings when I lost my job. I've spent the last three years building them back up in case it happens again.



True, and I do have some however it's there as an emergency fund more than anything else, usually if an account is a little close with an unexpected outgoing there it's a nice little cushion pre overdraft
Author:  Amnesia10 [ Wed Feb 27, 2013 10:21 pm ]
Post subject:  Re: Scottish Widows survey: Bleak picture for savings
JJW009 wrote:
Amnesia10 wrote:
In reality if you did lose your job then you would get unemployment benefit and housing benefit...

Housing benefit is means tested. You don't get it if you have savings.

I know benefits are there to stop people becoming homeless and starving, but it did slightly annoy me that I'd have been "rewarded" if I'd spent all my income on drugs and whores instead of saving.

Yes but housing benefit does allow some savings. The limit above which you get no help is £16 000. Which is well above the figure mentioned by Scottish Widows. Most people have no savings or so little that the cap is meaningless for them. So even if you had £5999 you would still get housing benefit, though above that there is a taper so it pays not to have too much savings if you do not have job security.


l3v1ck wrote:
Amnesia10 wrote:
In reality if you did lose your job then you would get unemployment benefit and housing benefit which might cover a large proportion of your outgoings. So you might need something to keep you going until that actually arrived.

Bull. I got something like £50 per week. You get jack [LIFTED] if you have a partner. The fact they earn a pittance seems to be irrelevant.

Yes the rules for couples are ridiculous. I had a friend who because he was self employed in the construction industry had no amount of trouble getting help. It took weeks and dozens of forms but he got very little if anything. Fortunately he managed to find some work to keep him going but if you are in a couple the benefits system is harsh. It also pays more if you are separate and not a couple, hence so many people are charged with benefit fraud as part of a couple.
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