Brits carry on abroad thanks to savings

Tuesday 19th August 2008

Brits are using their savings to fund holidays, according to new research.

Data from Abbey shows people appear more concerned about getting a golden tan than saving for their golden years, with £3 billion lost though savings being raided to finance holiday jaunts.

Some 62 per cent of those polled said they would use savings to pay for holidays – suggesting £50.4 billion of savings will be used to pay for holidays.

On average, people spend some 10.1 per cent of their net income on holidays – but as the cost of living rises, people are turning to savings as they try to make ends meet.

Research by L&C Mortgages shows 36.5 per cent of people have used savings in the past year for something they previously would have used income?

While saving throughout the year to afford a holiday may seem admirable – certainly more so than dropping into debt merely to get burnt by the sun – Abbey found people's saving aims were not focussed beyond two weeks away.

Just 54 per cent of people said savings were among their top three priorities, while 33 per cent said holidays were in their priorities.

Reza Attar-Zadeh, Director of Savings and Investments at Abbey, said: "If people cut back a small proportion of the amount they spent on holidays and kept their savings, this would make a real difference to their financial wellbeing.

"With savings rates at excellent levels, there has never been a better time to save for the future."

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