You are here: Home - Saving-Banking - News -

51% of Brits don’t have enough emergency savings – including retirees and high earners

0
Written by:
19/07/2021
More than half of Brits don’t have enough emergency savings to protect themselves and their families should something go wrong.

A survey of more than 10,000 people on behalf of Hargreaves Lansdown found 51 per cent don’t have what’s considered a suitable financial safety net. Most experts recommend having three-six months’ of basic living expenses in an easy access account.

The emergency savings gap isn’t just an issue for lower earners. The research found 23 per cent of households bringing in more than £100,000 a year couldn’t cover their essential outgoings for three months.

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said this could be down to higher earners spending all the cash they have on larger mortgages, private school fees and holidays.

Retirees also have holes in their savings safety net, according to the survey.

Almost half (46 per cent) of retired people don’t have the recommended one-to-three years’ of expenses stashed away.

Among those without enough emergency savings, two in five households said things have got worse since the start of 2021, and only one in five say they’ve improved.

Millions of those who don’t have enough savings say they worry about it all the time. Almost two in five are worried about it, and one in five worry every day.

Coles said: “While this is concerning, it at least allows them to prioritise savings whenever they can. What’s even more alarming is the huge number of people who don’t have enough savings and aren’t worried about it at all – particularly among retirees.”

One in ten (11 per cent) people don’t have enough set aside in savings to be financially resilient, but are perfectly happy with the level of savings they have. This rises to 21 per cent among those who have retired.

“This may be because they have no idea of how much they should have, so having any savings at all lulls them into a false sense of security,” Coles added.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week