War Chest anyone: Oh Dear: Savers salted away just £38 in 2009

[milanbenes]

http://www.telegraph.co.uk/finance/p...8-in-2009.html



'The average person holds just £2,205 in a savings account, the equivalent of 1.7 months' take-home pay, according to savings provider ING. The group said the figure was only around a 10th of previous estimates for average savings levels, which typically come in at around £20,000.

'


ooooops


Milan.

[Mich the Tester]

http://www.telegraph.co.uk/finance/p...8-in-2009.html



'The average person holds just £2,205 in a savings account, the equivalent of 1.7 months' take-home pay, according to savings provider ING. The group said the figure was only around a 10th of previous estimates for average savings levels, which typically come in at around £20,000.

'


ooooops


Milan.

I'm sure lots of people used to have savings but have had to live off them for the past year.

[NeverBeenNorthOfTheM25]

http://www.telegraph.co.uk/finance/p...8-in-2009.html



'The average person holds just £2,205 in a savings account, the equivalent of 1.7 months' take-home pay, according to savings provider ING. The group said the figure was only around a 10th of previous estimates for average savings levels, which typically come in at around £20,000.

'


ooooops


Milan.

But that can be misleading ......... for instance, why would I squirrel away £20,000 instead of pumping it straight into my mortage???

[AtW]

I'm sure lots of people used to have savings but have had to live off them for the past year.

How can people with just £2k savings accept a risk of huge mortgage non-payment of which can result in them being kicked out from their house? And we are talking here about average savings - people on low incomes are likely to have less!

[Mich the Tester]

How can people with just £2k savings accept a risk of huge mortgage non-payment of which can result in them being kicked out from their house? And we are talking here about average savings - people on low incomes are likely to have less!

Oh dear. I'm pointing out that lots of people who did have savings have used those savings to carry on living and making their mortgage payments as their income has fallen away due to unemployment or weak business. I did that myself; 2009 was a tulip year, but thanks to my warchest I am still keeping my head above water and have missed no payments, even thought my savings are now considerably reduced, and I am rebuilding my savings by contracting and living within my means. You don't follow it do you? Someone might have 20,000 pounds of savings but if he loses his income, he'll find that before long it's gone down to 2000 pounds. That's OK as long as he finds a way to earn money (given 6 months or so most people will manage that) and then quickly starts to rebuild his savings. In your world people would have to hold lots of savings but never be allowed to live off them.

[MPwannadecentincome]

its better than the minus £22K we accumulated

[George Parr]

But that can be misleading ......... for instance, why would I squirrel away £20,000 instead of pumping it straight into my mortage???

Good point. Mortgage products are now very flexible, this combined with a pitiful rate of interest in savings accounts makes overpaying a mortgage a much more appealing option.

[MaryPoppins]

Oh dear. I'm pointing out that lots of people who did have savings have used those savings to carry on living and making their mortgage payments as their income has fallen away due to unemployment or weak business.

Exactly my position.

[AtW]

Oh dear. I'm pointing out that lots of people who did have savings have used those savings to carry on living and making their mortgage payments as their income has fallen away due to unemployment or weak business.

So you think 5% of additional unemployed and out of contract depleted average savings in the country?

If average saving is £10k for 100 people, it would be £ 1 mln in total savings.

5% of them (5) used up all savings, get them down to 0. Average savings will still be £9.5k.

The sad reality is that MOST people simply don't have much savings - many are in overdraft. Even £20k isn't much yet alone £2k.