Manchester financial worries: Study reveals savers are not comfortable without bigger nest eggs

By Ric Sumner

People in Manchester are increasingly worried about the amount of cash they have tucked away for a rainy day, a new report is revealing.

Just over two out of three people (64 per cent) surveyed said savings of up to £5,000 would be enough to put a smile on their face, compared to four out of five people (82 per cent) in 2010.

And the bills that affected them most were council tax and energy payments, with 21 per cent of over 55s hitting out at the cost of their gas and electricity bills.

The drop in happiness has been blamed on rising prices on the high street, and fears about jobs and finances.

The figures come from investment specialist Skandia, and Graham Bentley, the firm’s UK head of investment proposition, said: "The rise in the cost of living, uncertainty with the economic climate and talk of recession is clearly making people wish they had a larger nest egg than they might have considered necessary before.”

Manchester residents are also struggling to pay on average £720 per month to rent a home in the county, or £141,348 to buy their own home.

While savings of between £10,000 and £20,000 are now needed to give the same number of people peace of mind as two years ago, over a quarter said they would be happy with an income of less than £25,000.

Two thirds said they could get by on up to £50,000, and Graham Bentley said: “The amount of annual income they need to make them happy is surprisingly modest, possibly because rising unemployment is making them put more value in having a job that provides predictable income.”

Investment specialist Skandia is the principal sponsor of the British sailing team. For more information go to www.skandiateamgbr.com