Money

Money

· Britain puts price tag on financial security

· Men are looking for £20,000 more to eradicate their financial worries than women

· Over half of the nation fails to make their money ‘work hard’ for them

· A third of people are unable to save because of outstanding debt

Research by Kaupthing Edge, the online retail financial services offering of Iceland’s largest bank, Kaupthing and its UK subsidiary, Kaupthing Singer and Friedlander, shows that the average Brit deems £92,507 to be the magic amount of money to buy them ‘financial peace of mind’.

The price of one Aston Martin Vantage*, a six months stay at the Ritz hotel**, or 90 Prada handbags***, would be enough to put the average Brit’s financial worries to rest and make them feel financially secure.

Interestingly, despite females often being considered the more frivolous sex, women said that they only required £82,193 to feel financially secure compared to men who were looking for £101,999 for financial security.

However, when it comes to achieving this magic number, the majority of the population fails to make their money work hard for them. Over half (53%) of people leave any extra cash left over at the end of the month languishing in low interest paying current accounts instead of looking into better ways to invest it.

Ashley Whittaker, Head of Retail Savings at Kaupthing Edge comments: “Our research has revealed that people need three times the average UK salary**** to feel financially secure, so people are going to have to make their money work hard for them in order to gain this peace of mind.

“This includes finding an appropriate place for any substantial amounts of money left over at the end of each month. Leaving that money in your current account means that, not only may you not be getting the best returns on this money but you are also more likely to spend it on unnecessary purchases.

“As we now face the prospect of an economic slowdown it is more important than ever that people ensure they are making the most of their earnings. Kaupthing Edge currently offers instant access to your savings at a competitive rate of 6.5% AER and rate guarantee of 0.3% above base rate until 2012.”

Corrine Sweet, psychologist and author of Stop fighting about money, said, “Financial security is not an official term or status but is the amount that people feel they need in order to not panic about their finances. The research by Kaupthing Edge certainly shows that the dream of financial security is a far cry from reality for many as a third (33%) of people admits they are unable to save at all because of their outstanding debt.”