Savers in London have the highest average savings balances in the UK but those in Ceredigion, Wales save the most in relation to local earnings.

The average London saver has managed to put £16,972 away, while those in Ceredigion have an average balance of £9,805. This is the equivalent of 65% of local annual average earnings of £15,183. Nearly half of the 20 areas with the highest savings as a percentage of local earnings are in the South West (six) and East of England (three). Many of these areas have a relatively high proportion of older residents and are popular retirement areas.

London boroughs make up the majority of the areas with the smallest levels of savings in comparison to local earnings. The research from Halifax showed nine of the 10 lowest are in London, including Kensington & Chelsea (12%) and Hackney (14%) – which also has the lowest average savings balance at £3,847.

Peter Jackson, head of savings at Halifax, said: “There are wide variations in saving behaviour across the country with Londoners saving a significantly smaller proportion of their income than elsewhere in the country.

“The recent Pensions Commission report emphasises the importance that people need to attach to planning to ensure that they have sufficient income in retirement. Savings play a key part in that planning process.”

Trackback URI | Comments RSS