Greg Coughlan, head of savings at Lloyds, says: ‘Despite significantly higher income levels, today’s British and German households are both being beaten in the savings stakes by urban Chinese households.’ But he adds that China’s huge saving rate largely reflects the ‘lack of the social safety net’ in the form of state pensions and welfare benefits. The average Chinese has the equivalent of £19,000 put aside compared to £5,000 in the UK, a recent study showed. The typical German household has the equivalent of £8,650 – 70 per cent more than in the UK.
It is clear that in the UK families are being squeezed by the soaring cost of living, and have dipped into their pots to make ends meet. The average Briton’s nest egg has shed £600 or 11 per cent over the past year, the research showed. German saving also suffered, falling 5 per cent.
The UK’s savings crisis has left nine in ten adults ‘stone broke’ with no form of saving for the future whatsoever, Lloyds says. This could leave millions of people facing financial ruin if they lose their jobs. The Chartered Insurance Institute has estimated that Britons are collectively trillions of pounds short of a retiring in comfort due to chronic under-saving in pensions and investments. Enable experienced Independent Financial Advisors of Bishop’s Stortford know how important savings can be to future planning and are always happy to talk though individual savers needs.