10 million Brits have less than £100 savings
Research by Yorkshire Building Society reveals more than 10.3 million people have less than £100 in savings, while one in ten have no savings at all. More than a quarter (26%) say they have less than £500 squirreled away.
The data highlights the UK’s widening financial wellbeing gap – the gap between non-savers and savers – as the number of people not saving at all has almost doubled over the last two years. More than one in five (21%) people have not saved anything in 2021 compared to just over one in ten (12%) in 2019.
At the other end of the scale there are signs of increased savings activity in light of the coronavirus pandemic, with many people seeing their savings growing under lockdown.
A fifth (20%) of people have increased their monthly savings and more than one in seven (17%) have reduced their outstanding debt during the outbreak.
The Office for Budget Responsibility has estimated that Britons will have collectively stashed away £180bn by the middle of this year due to the pandemic.
Tina Hughes, director of savings at Yorkshire Building Society, said: “Our new research continues to highlight just how fragile many people’s finances are with the shocking figure that nearly a fifth of all UK adults have less than £100 in savings. It also shows the further widening of the financial wellbeing gap in the UK.
“While we know it can be hard for people to put money away, especially with rising living costs and in a low interest environment, we mustn’t overlook the impact saving has on people’s financial and mental wellbeing.”
The research found more than a fifth (22%) of people have sleepless nights due to money worries, two fifths (40%) feel stressed about their financial situation and more than a third (35%) of people feel the Covid-19 pandemic had increased their stress levels when it came to money.