A poll carried out by a financial service provider has found that people in Britain are spending their savings on expensive holidays rather than going on cheaper breaks or putting separate money aside.

A poll carried out by a financial service provider has found that people in Britain are spending their savings on expensive holidays rather than going on cheaper breaks or putting separate money aside.

Abbey Savings reports that 62 per cent of respondents said they use their savings to pay for the annual holiday, with an average person spending over ten per cent of their annual income on the break.

Furthermore, a quarter said they thought a holiday is the best way to spend excess money.

Reza Attar-Zadeh, director of savings and investments at Abbey, said that savings rates are currently at excellent levels and people could benefit from putting money aside for next year’s holiday.

“If people cut back a small proportion of the amount they spent on holidays and kept their savings, this would make a real difference to their financial wellbeing,” she remarked.

However, MSN Money reports that breaks need not be expensive – in particular, holidays to India were found to be cheapest, with a pint of beer costing as little as 50p and a three-course meal priced at £3.25.

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