SAVERS have built up a stash of cash worth £1.7 TRILLION over the past few years – and experts reckon now is the time that they’ll splash out.
In the turmoil of the last two years, Brits have been saving for a rainy day, especially as they haven’t been able to splurge on holidays and meals out like they used to.
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The mega estimated £1.7trillion pot works out to be equivalent to £412 a month per household, sitting aside ready to be spent.
We’ve seen some savers even able to save more than that with their own nifty tricks and challenges set-up to both entertain themselves and ready their own emergency fund for harder times.
Since 2020, industries in the UK have been shut down and reopened, only to be shut down and reopened again, and the volatile restrictions have only made savers cautious of their spends – or unable to use them at all.
At some points tough pandemic restrictions meant restaurants closed and holidays were cancelled.
Now things are beginning to slowly return to normal, experts believe that consumers will be ready to go back out and spend their hard-earned savings once more.
Speaking to The Express, retail expert Richard Hyman said: “People do want to spend but at the same time many are cautious. They understand that some of the money they accumulated might be better used to set aside.”
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That’s because things like energy prices are continuing to rocket, and the cost of living is still on the up, despite the fresh outlook on the year.
Some have even had to face the harsh decision between heating and eating as they decide how best to use their spends after an expensive Christmas last year.
But Brits have reportedly tucked away £266billion since the pandemic began, according to analysis from investment management firm Bowmore Financial Planning.
The value of those savings has risen by £11.5billion a month in two years too, compared to just £4.6billion a month in the two years before.
That means that the estimated overall cash pile for the nation has reached £1.7trillion.
But it’s not only the pandemic restrictions sealing everyone off at home that have contributed to the savings.
Experts say that a rise in National Insurance rates could have triggered a harder look at finances as families look to self-insure for any more price hikes too.
But that being said, shoppers reportedly spent more on Black Friday and for Christmas too as they had the cash to spare before bills hit hard.
With the January blues too, travel operators have reported an increase in bookings for summer holidays.
Especially now that the Government has announced that pre-departure PCR tests will be scrapped, more jet-setters are interested in splurging on getaways.
According to The Express, flight prices are up to 71% cheaper than before the pandemic for some destinations for UK travellers.
The sudden interest in holiday bookings was even encouraged by Chancellor Rishi Sunak who said it was “absolutely fantastic” that Brits were making keen bookings and that it will be sure to drive Britain’s economic recovery.
I put away £2 every time in rained in the UK – this is how much I saved
