UK middle class hit by savings slump


Middle Class Family

Rising UK costs and other aspects of the faltering economy have led to middle class families losing £2,000 worth of savings in the last three months, a new survey has revealed.

This drop suggests that middle class families have seen their savings drop at a faster rate than other social groups. As the threat of recession once aging looms these families are finding their money does not go as far in the face of rising costs for foodstuffs, energy, petrol, utilities and childcare.

The survey was conducted by ING Direct, who investigated the impact of current economy issues on people aged between 35 and 54 are suffering the most as they spend the most money on the aforementioned items.

Savings are classed as funds that are “readily available,” and the UK average is £1,501, which is estimated at lasting around 35 days. According to the survey, four out of ten people are currently using their savings to pay for day-to-day necessities, further draining their cash reserves.

James Knightley, senior economist at ING Direct, said: “In this environment it is unsurprising that many households are running down their savings to finance everyday spending.”