British savers look set to cut the amount they save by £2.8 billion sterling a year due to increased national insurance contributions, research claimed today.
One in two people said they would cope with the rise, which came into force this month, by reducing the amount they saved each month rather than cutting back on their spending, according to Insight Investment, the asset management arm of HBOS.
The group estimates the reduction in saving could total £2.8 billion a year.
But 36 per cent of people said they would cut back on their spending to take into account the reduction in their pay packets; 7 per cent of people said they would increase the amount of money they borrowed so they do not have to spend less.