Saver behaviour; Life saver

The savings ratio in the UK has fallen to record lows. In earlier recessions, savings recovered quite quickly. But the severity of this downturn, disillusion with markets and the growth of private pensions will make for a much slower recovery out of this recession. That is bad news for the long-term savings industry. In the first quarter of this year, the savings ratio – defined as saving as a proportion of disposable household income – was minus 1.1%. In the second quarter it was just 0.4%. Th...