ALMOST ONE IN THREE ADULTS IN WALES ARE NOW ABLE TO SAVE MORE THAN BEFORE THE PANDEMIC

The average ‘comfortable’ adult in Wales will save £212-a-month, with almost a quarter being financially better off.

It has been revealed that 44 per cent of adults in Wales have continued to save as normal following the impact of the Covid-19 pandemic, whilst almost one in three are lucky enough to be putting more into their savings than usual.

A study of 2,000 adults, carried out by Skipton Building Society, found that over half of savers in Wales have a savings goal in mind, prioritizing saving for holidays, home renovations/extensions or a new car. Whilst one in five of those adults are set on saving for retirement and having a pot of free cash to spend in later life.

However, 8% of adults in Wales have found that the pandemic has made it difficult to save and nearly a third are living paycheck to paycheck.

In fact, over a third admit their savings fund is now primarily being used as back up in case of loss of income.

And in these difficult economic times, 11% of adults in Wales are more likely to spend hard earned cash on something frivolous than saving for something in particular.

Maitham Mohsin, Head of Savings at Skipton Building Society said: “While some adults are fortunately able to save more money than ever at the moment as they’re continuing to work but spending less, due to reduced commutes and less available entertainment. There are however, many who are concerned for their financial stability, and who are literally putting every penny into a savings account just in case.

“At Skipton, we know that when your money is in a good place, so are you, so it’s reassuring to see through our study that despite the Covid-19 pandemic, most British adults are sensible when it comes to their savings.

Surprisingly 43% of adults in Wales have a ‘save don’t spend’ attitude to their finances, with people likely to also be saving for new furniture, to move house or an unexpected reduction in income.

“Our research revealed the average household in Wales is able to put away £212 a month into their savings pot, which is a substantial amount, especially given the pressures some adults are currently under.”

Researchers at Skipton Building Society found people in Wales have found it hardest to save when they aren’t being payed enough (44 per cent), and when household income reduced following the birth of a child (24 per cent).

Other reasons saving plans have been shelved over time include unforeseen problems happen with the house (23 per cent), moved house to one with a bigger mortgage (14 per cent) and taking a different job on a lower salary (9 per cent).

Maitham Mohsin, continued: “One thing that our savings study highlighted is that only a fifth of adults in Wales are putting money aside for their retirement.

“Whilst this is understandable, with other aspects of your life taking a priority such as buying your first home and being prepared for a reduction in come.  However, holding off starting to save for your retirement makes it difficult to provide a pension pot big enough to rely on later in life and we would urge all adults of all ages to think about saving for their retirement sooner rather than later.”