Nearly half of all adults in the UK have no savings to fall back on, according to alarming new research, as the ongoing cost of living crisis continues to squeeze household budgets.
A study by Wealthify found that 45% of Britons have no emergency savings, leaving them financially exposed to unexpected expenses or further economic shocks.
Financial Vulnerability on the Rise
The survey of 2,000 UK adults paints a worrying picture of financial resilience, with millions potentially one paycheck away from hardship. Younger generations appear particularly affected, with 56% of 18-34 year olds reporting no savings at all.
Key Findings:
- 45% of UK adults have no savings
- 56% of 18-34 year olds are without savings
- Only 27% could cover 3 months' expenses from savings
- 1 in 5 admit to being 'terrible' at saving money
Experts Warn of Growing Crisis
Financial experts have expressed concern about these findings, particularly as inflation remains stubbornly high and essential costs continue to rise. Andy Russell, CEO of Wealthify, commented: "These figures highlight how vulnerable many households are to financial shocks."
The research also revealed that only 27% of respondents could cover three months of essential expenses from their savings, while one in five admitted to being "terrible" at saving money.
Regional Disparities Emerge
The study uncovered significant regional variations in saving habits. Residents of London were most likely to have savings (63%), while those in the North East were least likely (49% without savings).
With energy bills still historically high and food prices continuing to climb, financial advisors are urging households to build emergency funds, however small, to improve their financial resilience.
