Figures from the latest Savings Index, published by Nationwide, have revealed that 21 per cent of Britons are not saving at all.
This represents a decrease on the 25 per cent recorded in December 2009.
However, Nationwide’s Andy Hutchinson said it "will be interesting" to see if the savings trend can be sustained.
Mr Hutchinson claimed continued inflation may threaten the returns people will notice on their savings.
"Compared to the previous month, the number of non-savers fell from one in four to about one in five," he said.
"This could have been because of the recent increase in VAT meaning people spent less money and therefore had more money to save. Alternatively, some consumers may have made it their New Year resolutions to save more frequently."
Homeowners worried about the returns their savings will produce may be encouraged to look into equity release plans as a way to boost their income.
Such policies can allow property owners to access the funds which may be tied up in their assets.
