New research released today from Penfold, the digital pensions platform, reveals Londoners are the least likely group in the UK to spend more than they save each month, despite the higher cost of living in the capital. Half (50%) of those in London say they spend more on non-essentials including eating out and events, the lowest of any region and compared to 64% of people in the East Midlands, 66% in Wales and 62% in the South East (see table below).

Penfold’s research also shows that the saving habits of Londoners have improved, with 42% saying that while they used to spend more than they save, they now in fact save more.

Over a third of adults in London said this change in spending habits was due to having a greater understanding of different savings products such as pensions and ISAs. This figure was the highest of all parts of the UK, perhaps also suggesting that education on financial products is more targeted at those in the capital. Penfold says more education on the importance of saving and the benefits can clearly have a direct impact on people putting money into savings and investment products, making them more financially resilient.

Londoners edging ahead on pensions saving

The research found that nearly a third (30%) of Londoners contribute between £101-£200 into their pension each month. Just 16% of people in the capital don’t contribute anything – one of the lowest rates across the UK.

In comparison, Penfold says there is a worryingly high number of people who are still not saving into a pension elsewhere in the country – with 23% of savers in the North East saying they don’t contribute anything towards retirement, despite having one of the lowest costs of living in the UK.

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