The future is not looking good as people find it increasingly difficult to save, according to Baronworth Investment Services.
The advisory firm claim that although the UK is not currently in crisis, if the present savings culture continues, there are “major problems” ahead.
“People are finding it very tough to put money aside each month for long-term or even short-term savings,” commented Colin Jackson, director of the company.
“Things ain’t looking good,” he added.
Mr Jackson said that although the base rate has been cut, there is no guarantee that interest rates will follow. He explained that with increasing living costs and mortgage payments, there is less leftover to save.
Credit Action reports that total UK personal debt reached £1,391 billion at the end of October, a 9.7 per cent increase over the previous year.
Total consumer lending stood at £222 billion during October, having increased by 5.8 per cent over 12 months prior.