Brits are saving less than ever before, according to new figures from the Office of National Statistics (ONS).
Less disposable income is being saved by the UK population, and the savings ratio, which measures the incomings and outgoings that affect households, has been in decline for more than a year.
The savings ratio has dropped from 1.7% in January to March 2017, it was 3.3% in the previous quarter. Disposable incomes have also been hit, as for the first time since the 1970s they have fallen for three quarters in a row, the ONS found.
These statistics come after a Bank of England chief economist said in an interview that UK workers feel “frustrated and squeezed” because of stagnant pay levels.
Andy Haldane told the BBC that the flat-lining of pay packets for nearly a decade meant that many people were feeling under financial pressure and so were squeezing their buying power in the shops. He also said that business had not invested enough to improve productivity rates, which is also flat-lining, to be able to increase pay, which then contributes to low interest rates.
In property, mortgage lending is seeing a resurgence and the slump in the housing market appears to have ended.
Despite prices falling earlier this year, it seems that buyers are back, as new figures from the Bank of England, show that a total of 121,464 mortgages were issued last month.
People buying homes accounted for more than half of those loans, as oppose to buy-to-let mortgages, and in value, the total mortgage debt increase by £3.5billiion – the fastest rate in over a year.
Consumer credit also continues to rise, increasing by 10.3% on the year, while outstanding credit card debt rose by £242million this month, up by £3.5billion on the same time last year.
Consumer debt, such as personal loans, rose by £1.1billion on the month and £11.3billion on the year. These increases in debt come after warnings this week from the Bank of England’s Financial Policy Committee that the increase in consumer credit could affect the financial stability of the UK.
In pensions, the European commission is proposing the introduction of a new EU pension to help people who move around Europe.
The new pension product would allow workers who work in different countries around the Europe the ability to save into one pension pot, instead of having multiple pots in each country. The commission is suggesting that to make the EU pensions more attractive to savers that national governments give the product the most favourable tax treatment available.
The EU commission found that only 27% of Europeans aged between 25 and 59 have a pension.