households across the UK have increased their savings by more than 450 per cent in the last 40 years.
Research by Lloyds Bank has found that UK savings now stand at an estimated £4.1 trillion, compared to £744 billion (in real terms) in 1975.
When taking into account an increase of 40 per cent in the number of households, the figures mean the average value of savings per home has increased 294 per cent from £36,989 in 1975 to £145,566.
This is despite a decrease in the proportion of income that people are saving.
The figures show that households saved an average of 13 per cent of their wage between 1975 and 1995, with the ratio peaking at 16.4 per cent in 1992.
The annual average fell to its lowest of 5.5 per cent in 2008 and now stands at 6.0 per cent.
The research also shows that 36 per cent have no savings, deposits and investments and a further 13 per cent hold savings and investments of less than £1,500.
Pensions accounted for more than half of the overall increase while the value of deposit based savings has grown by 226 per cent.
The percentage of savings held in stocks dropped from a peak of 35 per cent in 1999 to 19 per cent in 2015 due to the popularity of ISAs and a decline in the value of shares.
Philip Robinson, savings director at Lloyds Bank, said: “The UK savings market has seen a dramatic shift over the last 40 years, with increased retail competition, the rise of digital banking and a greater emphasis on private pensions and tax free savings. Despite witnessing three recessions during the period, in addition to rising levels of consumer spending and borrowing, real household savings have grown annually by an average of over 4 per cent and we would expect this to continue over the next few years.”
The figures – sourced from the Office for National Statistics and the Bank of England – are all expressed in real terms, meaning at today’s prices.