8 May 2008
- Londoner’s puts price tag on financial security, nearly £50,000 more than the UK average of £92,000.
- Almost half 49% of Londoner’s fail to make their money ‘work hard’ for them
- More than 1 in 10 Londoner’s put wanting to save more as their highest financial priority
Research by Kaupthing Edge, the online retail financial services offering of Iceland’s largest bank, Kaupthing and its UK subsidiary, Kaupthing Singer and Friedlander, shows that the average Londoner deems £139,845 to be the magic amount of money to buy them ‘financial peace of mind’.
This figure was nearly £50,000 more than the national average of £92,000 and twice (£58,000) the amount stated by people living in Scotland and Northern Ireland illustrating the soaring cost of living in the World’s second most expensive City.*
Although, when it comes to achieving this magic number, the majority of Londoner’s fail to make their money work hard for them. 49% of people surveyed who have money left over at the end of the month keep it languishing in a low interest current account instead of looking into better ways to invest it.
The research also showed that the state of our finances is becoming increasingly more important for Londoner’s with more than 1 in 10 (12%) saying that their financial priority is to save more.
Ashley Whittaker, Head of Retail Savings at Kaupthing Edge comments:
"Our research has revealed that people need three times the average UK salary** to feel financially secure, so people are going to have to make their money work hard for them in order to gain this peace of mind.
This includes finding an appropriate place for any substantial amounts of money left over at the end of each month. Leaving that money in your current account means that, not only may you not be getting the best returns on this money but you are also more likely to spend it on unnecessary purchases.
As we now face the prospect of an economic slowdown it is more important than ever that people ensure they are making the most of their earnings. Kaupthing Edge currently offers instant access to your savings at a competitive rate of 6.5% AER and rate guarantee of 0.3% above base rate until 2012."
Corrine Sweet, psychologist and author of Stop fighting about money, said,
"Financial security is not an official term or status but is the amount that people feel they need in order to not panic about their finances. The research by Kaupthing Edge certainly shows that Londoner’s are in a good position to turn dreams into reality with nearly 1 in 4 (24%) saying they do not have any outstanding debts and they regularly save. "