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UK families 'struggling to save'
January 25, 2012
Research from Aviva shows that many families are struggling to keep up with the rising cost of living.
The number of families who are saving nothing has reached its highest level for 12 months, new research shows.
According to the latest Aviva Family Finances Report, 42 per cent of families are saving nothing each month, up from 40 per cent in January 2011.
On average, households are managing to save just £21 each month, compared with £34 in August 2011, and 30 per cent of families have no savings set aside for a rainy day.
Aviva's report also shows that the average household's levels of debt have increased by 48 per cent over the past year, while 62 per cent of families cite the rising cost of living as their main concern.
Spokeswoman Louise Colley said that many families are "struggling to keep up" with the increasing costs of essential goods and services.
"Families in the UK are still very concerned by the rising cost of living and levels of unemployment," she observed.
"Many appear to have acclimatised to this economic environment by shopping around and seeking to minimise their spending in certain areas. However, at the same time there are still a worrying number of families with insufficient savings or large debts."
Meanwhile, a separate study from Prudential has highlighted the importance of retirement planning, as many people have outstanding debts as they approach the end of their working life.
Aviva Life Insurance
