Press Release

WOMEN START TO OUT-PERFORM MEN IN THE SAVINGS RACE

7 JUNE 2006

NS&I Quarterly Savings Survey for Spring 2006 shows overall savings levels up year-on-year

Women are starting to overtake men as the nation's top savers, despite earning significantly less than men, according to the latest findings of the NS&I Quarterly Savings Survey, to be published on 7 June.

The amount women save as a percentage of their average monthly income is more than 1% higher than last spring at 6.84% - one of their highest ever levels and more than that saved by men (6.37%) for the first time since the Quarterly Savings Survey began in 2004.  This is despite the fact that men's average monthly income (£1,508) has increased substantially more than women's (£1,047) over the last year (compared to £1,370 for men and £992 for women in spring 2005).

Women more determined than men

Over half (54%) of all women are regular savers, the highest recorded and almost equal to the 56% of men who are saving each month.

Compared to women, men's savings habits have been sluggish. Although higher than last year's 5.97%, the amount they are putting away is almost 1% lower than the previous quarter (7.32%) This suggests they are more affected by seasonal variations than women who are more stable savers.

Women's saving success this quarter may be due to the strong focus they have on saving.  Women have been consistently more ambitious savers than men, aspiring to contribute more of their income to savings than men, with the figure only once dropping below 15%.  This has continued this quarter with a target to save 15.49% of their monthly income compared to 12.68% for men.

In addition, two in five men (43%) have no savings goals at all, whereas women are more focussed, saving for specifics such as home improvements (9%), and children (7%). This seems to have created a more driven approach to saving.

Spring 2006	Men	Women
Average monthly income	£1,508	£1,047
Amount saved as % of average income	6.37	6.84
Average saved per head	£96.04	£71.64
Ideal savings as % of average income	12.68	15.49
Percentage saving regularly	56%	54%
Percentage saving for 'nothing in particular	43%	35%

Dax Harkins, senior savings strategist at NS&I, commented: "Despite having an earnings advantage over women, men are failing to make the most of their ability to secure their financial future. It is perhaps because they averagely earn more and therefore feel more confident about their financial situation that they are more likely to fluctuate the amount they put away and are not showing such strong improvements as women.

"In contrast, although women are affected by the double whammy of lower pay and the fact that many take career breaks or work part-time, they have impressed with both their actual savings and intentions. Increased awareness of these difficulties and focussed debate on women's long-term savings could have sparked this increase."

Year-on-year savings increase

Overall, savings levels have increased year-on-year, with more saved on average per month and a greater portion of earnings committed to savings since spring 2005. However, spring continues to be a poor period for saving, with levels slipping from the highs achieved in the autumn and winter (7.16% and 6.90% respectively).

	Percentage of monthly income saved	Average saved per head	Percentage who regularly save
Spring 2005	5.82	£68.85	48
Summer 2005	6.64	£81.36	55
Autumn 2005	7.16	£89.11	55
Winter 2005/6	6.90	£85.71	55
Spring 2006	6.49	£84.20	55

Dax Harkins added: "It's encouraging to see that savings levels have increased overall, however for the second year running we have seen saving levels fall in the spring months, from 6.90% to 6.49%. This may be due to the traditional spring house-hunting season firmly under way. Figures from the Bank of England* show lending has picked up in March after the lull in house buying activity during the winter months. The number of new loans approved for house purchases in March was 27% higher than a year ago and higher than the average for the last six months.  As the hidden costs of moving bite and repayments start so saving capacities seem to be hit." 

The top reasons given for not saving more than they did ranged from people feeling they don't have enough income to save more (30%), having other financial demands which prevented it (23%) and not thinking they needed to save more (10%).

Top tips for savers

• Take a good look at your savings goals and how much you need to achieve them
• Review your monthly outgoings to decide what realistically you can afford to put away each month
• Keep an eye out for the best and most consistent rates available on a range of different savings products
• Set realistic savings targets - and try and meet them
• Divide savings into short and long term pots, to give yourself some flexibility should you need it
• Don't be afraid to seek professional advice if you need help finding the right savings product for you.

The NS&I Spring Savings Survey, covering the months of March, April and May, is the seventh issued since the Survey was launched in December 2004, and provides a detailed examination of British consumers' savings patterns during the quarter as well as their likely savings patterns over the next three months and in the year ahead.