Nov 3 2008
A study conducted by AXA has revealed that 20 million homes in the UK are unable to save money currently due to the financial pressures they are under.
In news which may have a bearing on the cash being put away in children's savings plans, only the wealthiest 20 per cent of consumers have been able to avoid spending beyond their means.
According to AXA, only workers earning in excess of £70,000 a year have been able to contribute to their savings since the turn of the year.
Meanwhile, households with earnings of less than £12,420 a year after taxes and benefits contributions were identified as having a saving ratio of -7.4 per cent in the first quarter of the year and of -5.9 per cent in the second quarter.
"Many of us still feel helpless even though we're worried about our money and understand that the cost of living is increasing," stated AXA's Steve Folkard.
However, in more positive savings news, figures produced recently by HM Revenues and Customs and the Department for Work and Pensions suggested that the amount of money deposited in individual savings accounts has risen seven-fold since 2000.
