UK savers 'lagging behind other countries'

By Joel Stanier

UK families are saving significantly less of their incomes than families in other countries, according to new research by Lloyds TSB - and many could be putting themselves at risk of problems with debt.

The research found that the average family in China saves nine times more than their UK counterparts, in relation to their incomes. Meanwhile, German families save twice as much as UK families.

Chinese families have £19,000 in savings, on average - compared with £8,600 in Germany and just £5,009 in the UK. Lloyds said that UK adults are four times more likely to struggle financially than Chinese adults.

Greg Coughlan, Head of Savings at Lloyds TSB comments: "While these findings should perhaps not be surprising in view of the figures we have seen on savings ratios, they are still remarkable. Despite significantly higher income levels, today's British and German households are both being roundly beaten in the savings stakes by urban Chinese households.

"However, UK families seem to be getting more engaged with their finances and savings, so we would hope to see some of these figures improve further over time."

A debt expert at Think Money said: "As well as providing something for the future, savings are there to protect against short-term financial emergencies that could otherwise be very difficult to afford. Without savings, something like essential car repairs or a broken boiler could land you in debt.

"With that in mind, we urge anyone who can afford to save to do so. Those struggling to afford anything other than their essential living costs may want to seek financial advice."

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