Emma-Lou Montgomery, Associate Director at Fidelity International discusses ONS final figures for UK GDP which shows that the household savings rate increased to 19.9% ​​in the 1st quarter of 2021 against 16.1% in the 4th quarter of 2020.

Emma-Lou Montgomery, Associate Director for Personal Investment at Fidelity International, comments:

“These numbers show exactly how much foreclosure restrictions have impacted our spending habits over the past year, with many of our usual spending out of reach. While the lockdown was different for everyone, for large swathes of society the daily savings piled up on a large scale. This has created an opportunity for many households to bolster their long-term financial situation by putting those savings to good use, our own research suggesting that UK adults have saved an average of £ 1,744 each in net daily expenses since the lockdown began. in March 2020.

“However, since the first quarter of 2021, as restrictions slowly ease, our spending has increased – the ability to browse physical stores or enjoy a meal with friends or family has been welcomed with open arms. . There is still a balance to be struck between spending and saving, however, and many households will be looking at how they can maintain the reserve they have accumulated. Before social restrictions are completely relaxed, taking the time to examine our spending habits and assess what is and what isn’t necessary is a good first step in staying on track. “