As the economic situation continues to take a tumble and costs of living becomes tighter, saving any proportion of income is out of the question for many UK households.

Research by Axa suggests that, since the start of 2008, over 20 million households are spending more money than they are saving. Only those who are earning a pre-tax sum of over £70,000 per year have been able to save more money than is spent, which begs the question: is saving only for the wealthy?

Those who are earning less than the above amount have had to face larger mortgages costs, higher utility bills and increases in essential items such as food and petrol prices. Axa representative, Steve Folkard commented: “If only the richest members of society are managing to cope with their spending then we really need to consider how to improve the day-to-day financial health of British households.”