Young single people are the best savers, according to a new National Savings and Investments (NS&I) survey.
The Turner Commission’s interim report into pensions in October put the state of the British savings deficit into stark terms: we need to save an extra £57bn through state or private pension schemes, or work longer before retirement.
The survey of 1,500 people found that those in the 16 to 24 age range save the highest proportion of their salary.
At the other end of the scale, people in the 35 to 44 age range put the least money aside – chiefly because of the struggle to raise families and pay mortgages.
People in the 16 to 24 age range save nearly 10 per cent of their salary – a third more than people in the 35 to 44 age grouping. However, people in their 30s and 40s are putting much more away in cash terms, as their salaries age higher on average.
“The fact that members of the 16 to 24 age group are so willing to save contradicts the often held view that young people don’t understand the value of money and are addicted to credit,” Dax Harkins, senior savings analyst at NS&I, told BBC News.
“They seem to have taken the message on board that you have to save for what you want.”
People at the top end of the earnings scale are putting away 7 per cent of their salary, about half the recommended level, the survey found.