Economic uncertainty 'triggers saving instinct'

Monday, June 21st 2010

A new report studying 50 years of financial management in Britain concludes people are more likely to save during times of economic uncertainty.

Halifax, which has compiled the investigation, believes the recent recession has had a healthy impact on the amount of cash many Britons are stashing away.

"It should come as no surprise that people are far more focused on saving during times of economic uncertainty and our report examines the reasons behind this", explains Martin Ellis, housing and savings economist at the financial institution.

He adds UK households are now trying to put more money aside than ever before, with the real-term value of savings quadrupling over the period in question.

However, he was quick to point out there is still a significant number of Britons with little or no savings at all, perhaps making them particularly vulnerable to job losses or continued economic decline.

Savings could be the key to financial stability, which in turn creates happiness, according to a recent Aviva Feel-Good Insight Study.