Posted by Aston Avery

British financial resilience down

Post-pandemic, more households are saving at higher rates, but the number of people unable to save has doubled since 2019 but debt has risen, especially among younger age groups. Startling statistics from Yorkshire Building Society reveal the urgent need for support among Britons facing challenges in saving money amid soaring living costs.

The average monthly saving amount has increased by 58% compared to pre-pandemic levels in 2019, indicating that many people have adopted a more habitual approach to saving. However, there is a worrying trend as well, as the number of people unable to save money on a monthly basis has doubled since 2019.

The economic challenges of the past five years, including the global pandemic, rising inflation, and the aftermath of the 2022 mini-budget, have led to significant shifts in financial behaviors among UK households. Debt has risen notably during the cost-of-living crisis, especially among the 18-34 and 35-54 age groups. In contrast, the 55+ demographic has had to support their families with rising mortgage costs and deposits, impacting their savings. Younger people seem to be more financially conscious and are saving more while exploring various account types and products. However, they still face challenges in accessing professional financial advice tailored to their specific situations.

Aston spoke to Chris Irwin, director of savings at Yorkshire Building Society.

Photo by Colin Watts on Unsplash

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