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Lloyds TSB claim that UK families are worse off than Chinese families
The impact of the global recession on UK families has been made abundantly clear by the latest figures showing that Brits have an average of nine times less savings than the Chinese.
According to a study by Lloyds TSB, German families are saving double of what is saved in the UK and Chinese families are saving nine times what the average UK family has in reserve.
The UK household savings ratio of consumers’ disposable income against savings has fallen over the last decade. The economic meltdown has bumped this up to around 7%.
The research found that UK adults are almost four times more likely to be ‘flat broke’ than Chinese adults. However, the large amount of savings in China reflects the lack of social financial protection they have in state benefits, pensions and benefits.
The data shows that the gap between Chinese and UK consumer savings has never been wider. Only 3% of the Chinese population have no savings at all.
China has a high savings ratio compared to the UK and financial family planning is more prominent in Chinese culture, with 82% claiming they have switched to different financial services to get a better deal. Only 62% of Brits have done this.
Switch to a better bank account or credit card to see if you could save cash.
The average UK household has £5,009 in savings and investments, which is £3,600 lower than German households and only around a quarter of what Chinese households have in savings at £19,334.
Greg Coughlan, Head of Savings at Lloyds TSB, commented; "While these findings should perhaps not be surprising in view of the figures we have seen on savings ratios, they are still remarkable. Despite significantly higher income levels, today's British and German households are both being roundly beaten in the savings stakes by urban Chinese households.”
"However, UK families seem to be getting more engaged with their finances and savings, so we would hope to see some of these figures improve further over time."
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