A recent study by UK financial services company Scottish Widows says that many Brits don’t make any attempt to save for the future; many have no savings at all. Their message is clear; reintroducing the savings habits of earlier generations would be a prudent step for many people.

I won’t argue with that, with one exception. If you have significant debts, then paying down those debts is more prudent than building up savings, especially as those savings will earn tiny rates of interest compared with the interest you’re paying on your debts; and tax has to be paid on that interest anyway.

For more on this topic, see my earlier post of 27 Jan 2013.