The state of the nation.

The UK savings rate (that’s how much we all put to one side instead of spending on handbags) is up from virtually zero to 4%.  I’m proud of us!

I’m from the generation that has found borrowing easier than saving up, so I think we should be proud that we’re adjusting.  Hopefully this is a new trend, not just a recession coping strategy.

“But”

The post-war average was 7%, so we’ve still got some work to do – and we should all save 10%, so somebody isn’t saving properly yet.

“And, but”

I am aware that inflation is bad for savings – and see my previous post about that – but it’s still worthwhile…. You could always put your savings in inflation-proofed accounts.

I wonder – did the last bout of high inflation kill off our willingess to save? Answers on a post-card please….

Building Wealth inflation, saving, United Kingdom