13 Aug Over Three-Quarters of Adults in Essex Don’t Have a Savings Plan for the Future
As more Brits head back to the office and those on furlough begin to return to their jobs after months at home, the financial impact of the pandemic on individuals is becoming more apparent.
With millions of Brits having to survive on less than typical pay, just 80%, and with the majority working in lower paid employment, the focus had been on survival as many waited for the return to work. This financial uncertainty has meant that saving was less of a priority, and most savings and emergency funds were used to supplement the loss of income.
A recent survey of 2,000 Brits by Saffron Building Society found that less than a quarter (23%) of Essers had any savings plan for the future at all, following the impact of the pandemic, with many unable to find the funds to save even an emergency fund to help plan for life’s unexpected curveballs. Having an emergency fund is a lifeline for everyone. For Essex families, it can ensure you have money to put food on the table or get new uniforms as the return to school approaches. For young people, it provides a lifeline for car repairs or as an emergency food fund as university returns. For those returning to work, an emergency fund will prepare you for any loss of hours, or as a worst-case scenario, loss of a job due to ongoing pressures on businesses.
John Penberthy-Smith, Chief Commercial Officer at Saffron Building Society, comments on the findings: “It is no surprise that many people, of all age groups, have seen their savings reduce if not vanish because of the effects of the pandemic. We are aware that our member’s savings have been reduced due to supplementing their reduced income, meaning they have little to nothing left. Whilst many people save for life’s milestones such as a deposit for their first home, buying their first car or preparing for a baby’s arrival, many use their savings to prepare for those unexpected emergencies that life brings. It is saddening to hear that less than a quarter of those surveyed in Essex have any plans to save for the future.”
Saffron Building Society is today announcing the launch of a brand-new Small Saver account. The Small Saver, available to anyone over the age of 16, is designed to offer those with limited saveable income an easily manageable account to begin their savings journey. The savings account requires a minimum balance of £1 and a maximum balance of £600. Deposits are limited to between £1 and £50 per month, and withdrawals are limited to once a month.
John continues: “Having listened to our current members and following our financial wellbeing research, it seemed now was the time to offer a new Small Saver account that offers the benefits of a regular saver – but focus on those with limited income to save. Allowing smaller deposit amounts ensures our members can save and start to set realistic savings goals. It’s more than money though, our members benefit from free financial wellbeing calls that allow them to confidentially discuss their situation, help adjust goals and see a path to a better financial future. Therefore, when the account matures in 12-months, they will be ready to take the next step to a regular savings account and have a more positive, confident future financial outlook.”
The Small Saver account is available to open online, through a branch or by post now and offers a fixed interest rate of 1.75%, calculated daily and paid at the end of the term. Account holders can deposit just £1 to open the account, and deposit £50 monthly and then manage the account online, in branch or by post and view your saving status via the Saffron Building Society App. Deposits and withdraws can be made to a nominated account, limited to one withdrawal per month. To find out more about the account and to begin saving today, visit www.saffronbs.co.uk. Saffron branches are located in Colchester, Brentwood, Saffron Walden and Halstead for any starter savers who would like in-person advice.