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UK families’ savings at lowest level in 18 months

Staff Writer |
Inequality is on the rise, with the difference in financial fortunes between low and high income families becoming starker over the past year, according to Aviva’s Family Finances Report.

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At the same time, families are also facing increased financial pressure from stalling incomes and savings, combined with rising debt and inflation fears.

The savings gap between low and high income families has grown 25% year on year, from £50,072 in winter 2015/16 to £62,790 in winter 2016/17.

Aviva’s data shows low income families (earning £1,500 or less a month1) now typically have just £95 in savings and investments excluding pensions, compared to £136 a year ago, while high income families (earning £5,001 a month or more) have increased typical savings to £62,885.

Aviva’s data suggests one in four (25%) UK families are classed as low income, while less than one in ten (8%) fall under the high income classification.

The typical amount held in savings and investments across all UK families has fallen from its highest level of £4,426 last summer to £3,134, the lowest level since summer 2015 (£3,116).

This is likely to have been influenced by the fact typical monthly family incomes have fallen to a two-year low of £2,006, according to Aviva’s research.

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