Two thirds of Yorkshire people worry they are not saving enough for retirement

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Just one in three people in Yorkshire say they feel confident they are saving enough for their retirement, new data shows.

Research from challenger bank Aldermore shows that the disparity between the North and South over how much individuals are saving from their income is increasing.

Savings are becoming more of an issue.

Savings are becoming more of an issue.

The North/South divide in savings shows that workers in London save £3,962 each year compared to just £1,400 on average in the North East.

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In Yorkshire, the average worker is saving £1,771, some 8 per cent of the average income, as compared with 11 per cent for Londoners.

Aldermore adds that savers are putting away a larger proportion of income this year than last year in ten out of the twelve regions, only decreasing in Northern Ireland and the East Midlands

Overall in the UK, individuals are saving an increasing percentage of their average annual income from 7.4 per cent in 2018 to 8.1% in 2019

Money worries are mounting in Yorkshire.

Money worries are mounting in Yorkshire.

In 2019, savers in London set aside the largest amount in the UK, an average of £3,962 annually or 11 per cent of their annual income, up from £3,055 in 2018 despite a decrease in their reported average annual income. This was followed by savers in the South West and East of England that on average put away 9 per cent of their income, an increase from 7 per cent in 2018. By contrast, average savers in the North East, saved just £1,400 each year (6.7 per cent of their annual income), slightly over a third of what Londoners saved.

The disparity in savings habits across the UK also has an impact on feelings of financial stability. Half of Londoners feel like they are saving enough to ensure a stable financial future. This compares to just 36 per cent of individuals in the East Midlands and 37 per cent of individuals in Yorkshire who feel they are saving enough for their financial future.

Ewan Edwards, Head of Savings, Aldermore says: “It is encouraging to see people are increasingly focused on getting into the positive habit of saving. Making little changes to spending and saving routines can be very rewarding in helping realise people’s short and long term money goals.

“The UK has many regional economic differences, which can affect people’s ability to save, but it is concerning to see such a gap between different areas. The data shows a positive correlation between saving for the future and a feeling of financial stability so prioritising savings is crucial in helping people feel they have control and security over their finances.”