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Public saving for a recession

Britons are preparing for a financial storm by saving 32 per cent of their

disposable income, according to findings from Alliance & Leicester&#39s new

wealth tracker index.

A&L asked a sample of 2,000 to detail their level of disposable income and

how much of this is saved, spent or invested to reveal the average Briton

aims to save £93 this month.

Despite many people paying for holidays abroad this month, three out of

four say they will be putting money away for a rainy day, which the lender

believes could be evidence that fears of a recession are rising.

The wealth tracker index also revealed that on average peoples&#39 disposable

income after household bills, mortgages and borrowings is£287 and

individuals intend to save £93, or 32 per cent of monthly income, and

invest £24 or 8 per cent.

But the index also shows Britons tend to borrow more than twice what they

will invest this month at £56 compared to £24.

Spokesman Simon Ripton says: “Despite low interest rates, there are a

large number of people putting money aside, which may suggest that fears of

a UK slowdown are rising. But there are lots of people saving money, which

could work harder for them if it was invested as part of a more balanced

savings and investment portfolio.”

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