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Londoners 'not saving enough'

23 February 2006
Londoners are failing to save a high enough proportion of their earnings, whilst those in Ceredigion in Wales are putting away more of their wages than any other Brits, new figures reveal.

A study of its deposit savings database by Halifax found that those in Ceredigion had the highest savings balances in relation to local earnings, with the average balance of £9,805 -equivalent to 65 per cent of local annual average earnings.

The area of the UK with the lowest savings in relation to local earnings is the London borough Kensington and Chelsea, with average savings at £12,551, representing just 12 per cent of average local earnings. The capital's borough of Hackney has the lowest average balances in the country (£3,847) and the second lowest savings as a proportion of local annual average earnings at 14 per cent.

In its first Savings Report, Halifax reveals that savers in the City in London have the highest average savings balances (£16,972).

However, London boroughs dominated a list of areas with the lowest levels of savings in relation to earnings.

The research indicates that almost half of the 20 local authority districts with the highest savings as a percentage of local earnings are in the south-west and east of England, both popular retirement areas.

Just one of the 20 districts with the highest average savings balances is outside the south of England.

Halifax head of savings, Peter Jackson, commented: "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."

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