Millions of Brits are failing to save enough money, with a significant proportion having only enough savings to last them four weeks if they lost their jobs, new research reveals.
According to the research by YouGov, which was commissioned by Lloyds Bank, a fifth (18%) of Brits would not be able to survive for more than a month if they suddenly lost their job.
Meanwhile, a third (33%) of British adults admit they do not save money regularly and only 30% would be able to survive for up to six months on the money they have saved if they found themselves out of work.
Worryingly, 7% of British adults have no savings whatsoever to fall back on should they find themselves without an income. And despite many knowing that they would be in financial dire straits if they lost their job, almost one in five (17%) admitted they don’t plan their personal finances at all.
Young adults are the best savers
Interestingly, the Lloyds How Britain Lives study also revealed that younger individuals appear to be the best savers, with 78% of the 18 to 24-years-old age group actively saving money. In comparison, just 67% of all UK adults actively save.
However, three in 10 (29%) 18-24-year olds confessed they struggle when it comes to managing their money and the proportion not planning their finances is in line with the UK average (17%).
Saving for a rainy day (66%), out of fear of losing their income (48%) and for a deposit on a new home (40%) are the main reasons why people save. A further 39% of respondents said they save to help their families.
Despite a fifth (21%) of over 55s admitting they do not plan or budget, most (53%) are confident they can manage their money.
Geography plays a part too
The Lloyds research also found that some regions of the UK are significantly better at saving than others. For example, people are more actively saving in the South East (72%), South West (72%) and East of England (72%) than any other UK region.
Meanwhile, a significant proportion of people are failing to save at all in the East Midlands (38%), Scotland (37%) and London (37%). An interesting point to raise here too is despite the median salary being 25% higher in the capital than the UK average, people living in London admitted to struggling the most with their finances (20%).
However, they are also most at risk if unemployed, with a third (33%) saying they would be unable to survive for more than a month on their savings, compared to the 18% UK average.
‘Millions at risk’
Speaking about the findings of the research, Jo Harris, Managing Director at Lloyds Bank said: “Millions are at risk of not having savings to fall back on should they lose their job or have to stop working. Being prepared for these unexpected circumstances as well as starting to save for the future can sometimes feel daunting, particularly for those on lower incomes unable to put away large sums.”
It’s worrying to see just how many people would struggle to survive if they suddenly found themselves out of work. Research like this should serve as a wake-up call to everyone who doesn’t currently save about the implications of not doing so.
I joined Premier Choice Group as a Healthcare & Protection Consultant in 2017, where I now look after the needs of over 200 clients nationwide. Prior to joining the Premier Choice Group, I worked for a large Private Healthcare Insurer, VitalityHealth, and managed SME and Individual clients across the country.