Britons increase savings after raids on nest eggs

A THIRD of Britons plan to increase the amount they set aside during the coming year after many admitted raiding their savings during 2010, a survey suggests.

Around 36 per cent of people said they expected to increase their savings levels in 2011, compared with just 24 per cent who thought they would save less than they did during the past 12 months, according to the high street bank HSBC.

But the research showed that people struggled with their savings during the past year.

Four out of ten Britons admitted that they had withdrawn more than they had set aside, with 23 per cent reducing their nest egg by more than a quarter.

Only 32 per cent of people ended the year with more money deposited than at the start of it, and just 15 per cent said they saved a lot more than they withdrew.

Younger savers have turned out to be the most determined to set aside money during the coming year, with 56 per cent of 18 to 24-year-olds and 50 per cent of 25 to 34-year-olds saying that they plan to save more, though more than a third of both age groups actually withdrew more than they saved during 2010.

Richard Brown, head of savings at HSBC, said: "2010 was a difficult time for savers, and it is no great surprise that many people had to withdraw more than they put away into savings over the past year."