Thu, 20 Apr 06
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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