Andrew, a writer in his mid-30s from Essex, has £4,000 in savings and £4,000 in stocks and shares. With monthly outgoings of at least £2,800 covering a mortgage, childcare and living expenses, he admits his savings would vanish quickly if his household income stopped. He has stopped contributing to his £30,000 workplace pension and now lives “payslip to payslip”.
Andrew is among many middle-class professionals who told the Guardian that the rising cost of living has forced them to halt saving. The personal savings rate in the UK hit a record high in 2020 during the first lockdown, but since then high interest rates and persistent inflation have forced households to dip into their reserves. Unauthorised withdrawals from Lifetime Isas, incurring penalty fees, rose 139% between 2020/21 and 2023/24.
According to Finder, the average UK adult has £16,067 in savings in 2025, but 39% have £1,000 or less, and 23% have £200 or less. Ryan, 30, a bank worker from Glasgow, said: “I have saved exactly £0. Should anything go wrong I am screwed. It’s not for lack of trying, but some months I even go without food.”
Carrie, a customer services worker in her 40s from Manchester, has a £70,000 pension but zero emergency savings. Her husband is long-term sick and lost his job while awaiting an NHS referral. “If I lost my income, we would have to sell our belongings and move in with family. With no savings I worry about what we would do if the landlord wants to sell.”
Some respondents, like Marceline, 32, a local government employee from Essex, have no savings but maintain their lifestyle. “I spent last year paying debts and then I had a funeral abroad. I went abroad four times last year. Next year I hope to start saving for a house.” Others, like Robert, 40, an insurance professional from Birmingham, have built security through extreme frugality, forgoing a family and most leisure.
