Value of UK household savings rises by over 450% during the Queen’s 60 year reign
As we approach the Queen’s Diamond Jubilee, new research by Lloyds TSB has looked at the key developments in the UK savings market over the past 60 years. The analysis starts a year before the coronation of Queen Elizabeth II at a time when the country was recovering from World War II and some rationing was still in place.
- 464% rise in the real value of UK household savings over the past 60 years.
- Savings now stand at an average of over £150,000 per household, including pensions, investments and deposit savings, compared with just below £50,000 in 1951 (at today's prices). Many, however, have little or no savings.
- Household savings recorded their biggest rise in value in the 1980s. Whilst savings fell in the 1970s in inflation adjusted terms.
- Deposit savings' share of total savings has fallen from 42% to 29% since 1951. Pensions and life insurance's share has more than doubled from 24% to 53%.
- Households have saved an average of 6% of their net income since the 1950s.
- The gross interest rate offered on no notice accounts has averaged 6.01% over the past 60 years. In real terms, savings rates averaged 0.29%.
- Savers clubs to investments funds: there have been significant changes in the UK’s savings habits.
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