ALMOST half of working age people in Scotland have less than £100 in savings, new research has revealed.
Experts at the Money Advice Service (MAS) have said the “worryingly low levels of savings” mean many Scots are vulnerable to unexpected bills that may have serious consequences.
Nick Hill, a money expert at the MAS, added: “Everyone’s situations and abilities are different, so it’s important to find an approach to saving that’s right for them.
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“For some on low incomes, saving is a real challenge as they may simply lack the income needed to save at all. But for many, developing a savings habit is very achievable. Regular saving is key to building up that buffer against those life surprises.”
A study carried out for the MAS independent financial body shows that more than 48 per cent of working age Scots have less than £100 in savings available to them at any particular time. Across the UK as a whole, more than 16 million working age people lack a decent savings buffer.
And nearly three-quarters of people experience at least one unforeseen expense per year. Recent government changes have taken many people out of paying tax on the interest they earn on their savings altogether but the savings rates available have continued to decline in the low interest rate environment.
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According to financial information website Moneyfacts.co.uk, there have been more than 130 rate cuts in this month alone and only around 20 increases across the adult savings account market. Last month, there were 388 rate cuts to adult savings accounts and just three increases.
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