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News: Windfall winners splurge on luxury living

Britons are frittering away more than half (52%) of their bonuses, inheritance and redundancy pay according to the latest research from Birmingham Midshires' Saving Britain campaign.

The average Briton received a monetary windfall of £5,944 in the last 12 months but of this saved or invested just 40%, putting just eight per cent towards paying off part of their mortgage or paying off debts.

The report shows that less than half (48%) of bonuses, inheritance and other cash inflows were put towards people’s futures, the remainder was soon spent on holidays, cars and other luxuries.

Proportion of windfall spent on different activities

Activity

Proportion

Save / invest

40%

Other luxuries

31%

Holidays

15%

Pay off part of mortgage / other debts

8%

Car

6%

Saving Britain, the ongoing campaign to analyse people's saving habits - also discovered that the type of windfall determines the way that it is spent. For example, those who receive a redundancy pay out will attribute 15% of the money towards their mortgage to secure their properties - almost double the average (8%).

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