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Britons are using their savings less but they almost halved the amount they put away over the last year, a survey has shown.
During the last three months of 2008, the average person saved £329, down from £644 during the same period of 2007, according to Birmingham Midshires.
However the amount of cash people withdrew from their savings accounts up to December dropped to £302 from £506 in the final quarter of the previous year, a sharp fall of 40%.
There has also been a steep decrease in the number of people spending their savings on holidays and going out, while only 9% of people raided their savings to buy luxuries during the final quarter of 2008, compared with 39% the year before.
Instead, 22% of those who dipped into their savings used them to pay for emergency repairs to their car or home, while 12% had to lend money to friends and family. The same proportion needed it to cover unexpected utility bills.
One in five people also had to fall back on their savings after overspending on their current account.
Tim Hague, director of savings and investments at Birmingham Midshires, said: "The latest data from our Saving Britain research shows that there has been a marked reduction in the amount people are raiding from their savings and a shift in the reasons for doing so.
"Those who are raiding their savings are doing so for essential reasons such as emergency repairs and increased utility bills rather than spending on luxury items."
A holiday is the main thing that people are saving for at 27%, while 26% are setting money aside for a rainy day and 15% are saving towards their retirement.
YouGov questioned 2,140 people during January.
Copyright © Press Association 2009
