By Steve Hardman, of the Cumberland Building Society

Last updated 09:40, Monday, 21 July 2008

Too few are saving on a regular basis, but there has never been a better or more important time to save.

• Vist the Cumberland Building Society website

Where does your money go? Why do so few people save on a regular basis to secure a safe future for themselves and their families?

Surely one of the most pressing issues is the need for people to save enough to secure their financial well-being, over the short, the medium and the long term.

The result is an increasing number of households facing a serious and growing savings gap.

This strain, both emotionally and financially can so easily be avoided with some simple advanced financial planning, in other words, savings.

This applies to all aspects of planning our finances. however most of us simply do not make any provisions for events and occasions we know will be a drain on our finances – let alone the unforeseen events that will also drain our financial resources.

In terms of long-term savings, it’s calculated that 67 per cent of those earning should be making further financial provisions for their future.

However, many people are simply not saving at all and those who are just don’t save enough.

Only 36 per cent of 30-50 year olds and 40 per cent of over 50s are saving regularly and 57 per cent of the population have less than £1,500 saved up.

The UK’s Savings Gap, currently £27 billion, is the difference between what we are saving and what we need to save to secure our financial future, but this could be eliminated for the price of a pint of lager and a packet of crisps each day!

On average each household in the UK saves just £1,784 per year.

To meet the gap this would need to be increased by an extra £1,100 per year, which is only around £3 per day.

So why don’t we save on a regular basis to secure ours and our families’ financial future?

Some reasons could be:

• We avoid perceived “risky” investments even when they are almost certain to gain in the long term.
• Most people value there present welfare much more than their future welfare.
• There is a significant amount of consumer distrust particularly where they suspect an ulterior motive.
• We believe we simply can’t afford to save anything.
• We don’t know the best place to put our savings.

There is a link between the level of saving and the amount of advice being available: more advice means more savings.

A survey showed that 46 per cent of households earning £9,500-£13,500 said they would not have saved or invested at all if they had not received some form of advice – therefore advice is essential.

The UK’s, and each individual’s savings gap, can be tackled by some common sense and some simple financial advice.

A sum of £90 per month extra savings should be manageable for the majority of UK households.

Simple, easy-to- understand, jargon-free financial advice is available at any of the Cumberland Building Society branches.

From short-term 12-month savings accounts to long-term retirement plans, we can cater for all your financial requirements.

Make next Christmas a stress free experience, start planning now.

• Steve Hardman is financial sales controller at the Cumberland Building Society. Visit the website at www.cumberland.co.uk
• This article should not be relied upon when making investment decisions. Always obtain financial advice.