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One in five have no savings to count on

A big savings shake up is on its way. 



Piggy bank shakeup
A big savings shake up is on its way. Piggy bank shakeup

New study findings show nearly one in five (21%) Scots have no savings to fall back on, while a third (33%) admit to not saving enough for the long term.

The latest annual How Scotland Lives reporrt, now in its third year, found the number of people not setting aside money for a rainy day north of the border is up from 18% a year ago.

Two fifths (38%) of Scots have savings of less than £2,500, which is slightly more that a month’s wages for the average worker and a long way off the three to six month’s wages which is the minimum level of savings recommended by experts.

The Bank of Scotland (BoS) survey polled more than 2,000 people across Scotland to get under the skin of issues ranging from housing to happiness, and schools to financial security.

Of those who don’t have any savings for the long-term, nearly half (48%) say they can’t afford to save, while more than one in 10 (12%) always find something else to spend the money on and a similar proportion (11%) have identified their priorities as short-term.

Of those who are saving, more than one in 10(14%) are trying to achieve a short-term goal – such as a holiday – and the same proportion (14%) are saving only for the long-term, for example a secure retirement.

More than one-third (34%) are saving for both.

BoS director Mike Moran said: “Many Scots have literally nothing to fall back on if they were to get into financial difficulties.”