HALIFAX, UNITED KINGDOM--(Marketwire - Feb. 27, 2013) - The Halifax Savings Barometer presents a snapshot of savings in England and Wales over a three month period. The research is based on data from Halifax's deposit savings database. The analysis in this release is based on savings accounts held with Halifax at the end of December 2012.
Female savers with Halifax have an average balance equivalent to 41% of their average annual gross earnings(i), whereas men have an average balance of just 23% of their earnings - a difference of 18 percentage points.
While women in England and Wales earn GBP 13,500 a year less than men on average(ii), the typical savings balance held by female customers is now GBP 8,211 compared to GBP 7,699 held by men - a difference of GBP 512.
The picture is the same across England and Wales, with women having more savings in proportion to earnings than men in all regions.
Women living in the South West have the highest average savings balance in relation to average earnings (49%), which works out at an average balance of GBP 8,700. Men save the most in relation to earnings in the South West, and Wales (both 28%), which works out at an average balance of GBP 8,344 and GBP 7,601 respectively.
At the other end of the scale, male (18%) and female (30%) savers in London have the lowest savings in relation to earnings, where average balances stand at GBP 8,032 and GBP 8,600 (see Table 1).
Richard Fearon, Head of Halifax Savings, comments:
"In recent years, people have become more aware of the need to put money aside in order to build a financial savings 'cushion'. Whether this is for a major event such as retirement or a wedding, or just for a rainy day it is important to save regularly where possible.
"However, while - on average - women earn significantly less than men the Halifax Savings Barometer shows not only are women outsaving men relative to their annual earnings, but they also have more savings in total."
Average customer balances
At the end of December, the average savings balance for Halifax customers had increased 0.3% to GBP 7,896(iii) from GBP 7,871 three months' earlier.
The largest average balances are held by savers in the South East (GBP 9,316) and East Anglia (GBP 9,283). Whereas the lowest average savings are in the North (GBP 7,408); a fifth lower (20%) than in the South East (see Table 2).
The East Midlands (GBP 8,452) and Yorkshire and the Humber (GBP 8,084) are the only regions outside southern England with an average balance above the England and Wales average.
The ten Local Authority Districts with the highest savings balance in England and Wales are all in the south, as are over half of lowest savings balances. South Buckinghamshire tops the list for the highest average savings balance, at GBP 13,762, which is more than three times that of Hackney - the lowest - at GBP 4,246.
Six of the ten Local Authority Districts with the lowest balances are in the Capital (see tables 3 and 4), with savers in Hackney having the lowest average balance at GBP 4,251.
Richard Fearon adds:
"However much cash people can afford to put aside in savings, the most important thing is that it is working as hard as possible. Tax efficient savings vehicles such as ISAs can help people to make the most of their savings. By protecting your savings from tax it means you will receive greater returns.
"The current cash ISA limit is GBP 5,640 and the overall annual ISA limit is GBP 11,280. However, people need to be aware the deadline to use their 2012/2013 ISA allowance is approaching and ends on 5 April 2013."
Table 1: Average Savings Balance as a Proportion of Gross Annual Average Earnings, December 2012
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Average Balance Average Balance as % Average Balance as
as % of Average of Average Female % of Average Male
Region Earnings (All) Earnings Earnings
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North 32% 41% 27%
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North West 32% 41% 26%
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Yorkshire and
the Humber 34% 47% 27%
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West Midlands 33% 44% 27%
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East Midlands 34% 47% 27%
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East Anglia 33% 48% 26%
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Greater London 22% 30% 18%
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South East 30% 45% 22%
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South West 35% 49% 28%
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Wales 34% 44% 28%
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England and
Wales 29% 41% 23%
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Source: Halifax and the ONS (ASHE April 2012 - published November 2012)
Table 2: Average Savings Balance by Region, December 2012
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All Customers
Average Balance Female Average Male Average
Region (GBP) (i) Balance (GBP) (i) Balance (GBP) (i)
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North GBP 7,408 GBP 7,403 GBP 7,454
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North West GBP 7,696 GBP 7,818 GBP 7,594
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Yorkshire and
the Humber GBP 8,084 GBP 8,268 GBP 7,922
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West Midlands GBP 7,864 GBP 7,997 GBP 7,760
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East Midlands GBP 8,452 GBP 8,626 GBP 8,330
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East Anglia GBP 9,283 GBP 9,559 GBP 9,063
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Greater London GBP 8,256 GBP 8,600 GBP 8,032
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South East GBP 9,316 GBP 9,692 GBP 8,956
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South West GBP 8,505 GBP 8,700 GBP 8,344
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Wales GBP 7,740 GBP 7,907 GBP 7,601
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England and
Wales GBP 7,896 GBP 8,211 GBP 7,699
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Source: Halifax; (i) all outstanding balances at end of December 2012
Table 3: Ten Local Authority Districts with the Largest Average Savings Balances
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All
Customers Female
Local Average Average Male Average
Authority Balance (GBP) Balance (GBP) Balance (GBP)
District Region (i) (i) (i)
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South South East
Buckingham-
shire 13,762 13,982 13,705
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Mole Valley South East 13,078 13,979 11,977
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Chiltern South East 12,876 13,859 11,784
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Elmbridge South East 12,695 13,448 12,007
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Cambridge South East 12,472 11,376 13,884
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Epsom and
Ewell South East 12,143 12,743 11,582
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Richmond upon Greater London
Thames 12,012 12,524 11,589
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Windsor and South East
Maidenhead 12,006 12,563 11,375
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Waverley South East 11,934 12,303 11,283
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St Albans South East 11,932 12,669 11,214
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England and
Wales GBP 7,896 GBP 8,211 GBP 7,699
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Source: Halifax; (i) all outstanding balances at the end of December 2012
Table 4: Local Authority Districts with the Lowest Average Savings Balances, December 2012
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All Customers Female
Local Average Average Male Average
Authority Balance (GBP) Balance (GBP) Balance (GBP)
District Region (i) (i) (i)
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Hackney Greater London GBP 4,251 4,286 4,243
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Newham Greater London GBP 4,490 4,944 4,198
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Manchester North West GBP 5,021 5,019 5,103
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Lewisham Greater London GBP 5,094 5,472 4,837
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Barking and Greater London
Dagenham GBP 5,106 5,257 5,231
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Kingston upon Yorkshire and
Hull the Humber GBP 5,350 5,374 5,361
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Southwark Greater London GBP 5,638 5,411 6,197
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Blaenau Gwent Wales GBP 5,718 5,834 5,620
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Lambeth Greater London GBP 5,762 5,891 5,744
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Corby East Midlands GBP 5,800 5,792 5,839
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England and
Wales GBP 7,896 GBP 8,211 GBP 7,699
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Source: Halifax; (i) month end all outstanding balances for December 2012
Editors' Notes:
Methodology
Data in this release is from the Halifax savings database for all outstanding stock of savings balances held by customers for all product types at the end of December 2012. Due to movements in the underlying data historical figures reported previously may get revised.
National averages in this release are for England and Wales only and are in not comparable to those stated in previous releases which included data for Scotland and Northern Ireland. In addition, it should be noted that average balances provided in 'Halifax Savings Insight', August 2012, were at account level. The figures in this release are averages per customer.
No adjustment is made to the calculation for area average balance where the gender is not known. Therefore, the overall savings balance may differ from the averages implied by the male and female averages. The figures in this report, by their very nature, exclude people who have no savings. Figures from the ONS' Financial Resources Survey 2009/10 show that 30% of households have no savings (Table 4.9 - Households by amount of savings and investments).
"This report is prepared from information that we believe is collated with care, however, it is only intended to highlight issues and it is not intended to be comprehensive. We reserve the right to vary our methodology and to edit or discontinue/withdraw this, or any other report. Any use of this report for an individual's own or third party commercial purposes is done entirely at the risk of the person making such use and solely the responsibility of the person or persons making such reliance."
(C) Bank of Scotland plc all rights reserved 2012.
(i) Annual gross earnings for all employees (ONS)
(ii) The mean gross annual earnings for men were GBP 20,224 women were GBP
33,683 (ONS)
(iii) All average balance data in this release are per customer.
FOR FURTHER INFORMATION PLEASE CONTACT:
Halifax Press Team:
Emma Varty
01902 325180 / 07824471951
emmavarty@halifax.co.uk
Lauren Jones
01422 394360 / 07825 584900
lauren.jones@halifax.co.uk
Shella Ali
0207 356 2014 / 07795 677754
shella.ali@lloydsbanking.com
Andrew Swailes
02073561714/ 07880 137791
andrew.swailes@lloydsbanking.com
Ben Marquand
01422 332833 / 07881 311199
ben.marquand@halifax.co.uk
Halifax
Customer Services
0845 739 4959
customerrelations@halifax.co.uk
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