• Four out of five savers using less energy
• Over 40% of savers feel financially worse off than last year
• Savers making substantial cuts to spending on entertainment, including eating out and socialising
• Savers advised to consider seeking better interest rates from specialist banks

Savers are cutting down on both essentials and entertainment, new research conducted by Paragon Bank has found.

Asked about how they were responding to the ongoing cost-of-living crisis, four out of five savers said they were intentionally using less energy to save money.

The research also uncovered the extent to which savers were cutting down on entertainment and socialising, with reductions in:

• Eating out (42%)
• Ordering take-aways (31%)
• Cinema, concerts, and live events (36%)
• Socialising (31%)

Out of the over 2000 savers polled, 42% said they felt worse off financially compared with this time last year – with 30% of savers having £200 or less left each month after paying their essential living costs.

Previous research by Paragon discovered that two in five savers were supporting family members due to the cost-of-living crisis, with those aged over 70 most likely to be doing so.

Commenting on the changes in the spending habits of savers Paragon’s Savings Director, Derek Sprawling, said:

“For many the current situation is not simply a matter of cutting their household spending to afford essentials, such as food and energy, but a significant change in how they live their lives. Savers put money away for a rainy day, but the economy may soon be facing months of rainy days with many tough decisions on what to spend their money. 

He added:

“One way savers could potentially support themselves during these challenging times is to find the best rates available for their savings - looking beyond high street providers. Sensible decisions today may help grow a savings pot, or partially protect its value against rising inflation.”

For further information contact:

Tom Frew
Media Relations Manger
Paragon
E: [email protected]
www.paragonbank.co.uk 

Notes to editors:

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £13 billion of assets under management and manages over 450,000 customer accounts.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ.