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&#3921 million adults have less than £500 savings&#39

Savers could put aside another £3.3bn a year without feeling the squeeze, according to research from fund manager M&G.

The Great British Savings Survey reveals that 21 million adults have less than £500 in savings.

But six out of 10 people admit they could save another £10 a month, which would result in the extra £3.3bn.

Despite the poor levels of savings, two out of five people claim they are worried that they have not saved enough to provide for themselves later in life.

The survey identifies four types of saver. These include savings shortfallers who say they cannot afford to put anything aside, savings shirkers who live for the moment and say they are not concerned about the future, sometimes savers who take a haphazard attitude towards savings and savvy savers who adopt a long-term savings strategy.

M&G found the first three categories account for the 60 per cent of the population who do not make adequate financial provision.

The research, conducted by NOP Solutions on behalf of the fund manager, interviewed 1,924 adults between January 30 and February 4.

M&G director Jeffrey Mushens says: “Our research clearly shows there is a great desire among people in Great Britain to get more organised about their approach to savings and to save more.

“However, the key barrier to developing the savings habit appears to be attitude. While some people are successful at saving, many others lack the organisation or commitment to save.”

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