In the UK at least, there is no 'tax free' level of savings. All savings are taxed on their interest, even for non-tax-paying paying people.
Also, most benefits are limited by the levels of savings a person may have.
A person or family living frugally to save for hard times is thereby penalised financially by politicians, whereas a person or family who spends all their money is eligible for all benefits because they have no savings!
In the current climate of debt-ridden economics, those going into debt are being refinanced by those who chose to save. Those who chose to save, now have to cope with reduced income from savings because interest rates have collapsed solely because of unsecured debt.
(There obviously needs to be some protection for those who earn so little that they cannot afford to save anything).
So, spend all your money to in order to obtain maximum benefit from other people!!!!
Accept personal insolvency when it arrives and congratulate yourself that you have consumed as much as possible at the expense of savers.