Almost half the nation’s savers have had to dip into their investments since the economic gloom came home to roost, new research has found.
Since the credit crunch hit last year, 47% of Brits with savings have spent a portion of their nest egg as household bills skyrocketed.
According to Fairinvestment.co.uk, 18% of this group have had to use up to a tenth of their
savings – equal to £281 – while 7% spent twice this amount.
A further 9% used up to 40%, and a hard pressed one in twenty had to spend between 91% and 100% of their
savings pot.
In addition, 8% reduced the amount they set aside each month, while 6% have stopped saving altogether.
Less jobs, more costs
"It is hardly surprising that so many Brits have had to dip into their
savings,” says Fairinvestment chartered financial planner Sharon Bratley.
“The cost of living is going up, and so is the number of job losses, leaving Brits vulnerable and dependent on back up like savings.
"However, when
savings run out, there may not be anything to fall back on. So, it's important that if people do need to dip into their savings that they only do so for essentials, keeping their savings for as long as possible.
Steps to boosting your disposable income
If you are feeling the pinch, its important you take steps to reduce your monthly outlays before you dip into your
savings.
We're not talking about cancelling the family holiday or moving to a smaller house.
Rather, these are simple changes that will have a minimal impact on your standard of living, but a dramatic impact on your monthly bills.
Take a look at our
article on money saving to learn more.
