Bank of Scotland: fifth of Scots have no savings

The study, now in its third year, found that a fifth of Scots have not put any money away for a rainy day – up from 18 per cent a year earlier.

Two fifths (38 per cent) of Scots have savings of less than £2,500.

That’s just over a month’s wages for the average Scot, and a long way off the three to six month’s wages that is the minimum level of savings recommended by experts.

The Edinburgh-based bank’s research polled more than 2,000 people across Scotland to get under the skin of the issues that really matter to people living in Scotland, from housing to happiness and schools to financial security.

Of those who don’t have any savings for the long-term, almost half (48 per cent) say they can’t afford to save, while more than one in ten (12 per cent) say there’s always something else to spend the money on and a similar proportion (11 per cent) say their priorities are short-term.

Of those who are saving, more than one in ten (14 per cent) are just saving towards a short-term goal, such as a holiday, while the same proportion (14 per cent) are saving only for the long-term, for example a secure retirement. Over a third (34 per cent) say they are saving for both.

A fifth say they are definitely not saving enough to meet their long-term needs, though almost a third say they are saving enough or more than they need to.

The most popular reasons for long-term saving are to provide for a more secure future (55 per cent), to help ensure a more comfortable retirement (47 per cent) and for emergencies (47 per cent).

The research also found that people in Glasgow are saving the least, with over a quarter (27 per cent) saying that they do not have any savings to their name.

What’s more, almost one in ten (9 per cent) aged between 18 and 34 feel they do not have anything to save for in the long-term.

Mike Moran, Bank of Scotland director, said: “Our research suggests that many Scots have literally nothing to fall back on if they were to get into financial difficulties.

“It’s recommended that everyone has three to six month’s wages in savings, just as a backup in case something unexpected happens. Opening a savings account and setting up a direct debit can be a good first step towards achieving your savings goals and it’s surprising how quickly savings can grow.”