UK families struggling to save for the future

The number of recession-hit families saving nothing at all has hit the highest level in 12 months at 42 per cent. 

As inflation puts pressure on incomes and debt, UK families are struggling to build up a nest egg, according to the latest 2012 Aviva Family Finances Report. 

The research found that most families classed as single parents (59%) or as divorced, separated or widowed (61%) said they do not manage to save anything each month.

Increasing daily living expenses mean that the typical amount now being saved monthly is £21 (January 2012), down from £22 in January 2011. 

At the same time, family debts have also risen, with the typical family debt - excluding mortgages - rocketing by 48% from £5,360 a year ago to £7,944 in January 2012 which represents almost one third of the typical annual net household income of £24,792 . 

The report says that this shows that families are building on their existing debts rather than clearing them.

Despite this, the typical monthly net income for families in the UK is up by 7 per cent on last year, now standing at £2,066, compared with £1,937 in January 2011. 

But divorced/separated/widowed parents fare worst of all family groups, seeing their monthly income fall significantly by 22% over this period from £1,387 in January 2011 to £1,075 (January 2012).

Deidre Sanders, Family Lives patron and problem page editor at The Sun has produced a guide for families who are feeling pinch. http://familylives.org.uk/advice/read-deidre-sanders-tough-times-guide