Millions of Brits have no savings to fall back on
A third (33 per cent) of Brits don’t regularly save any money, according to Lloyds Bank.
Lloyds’ How Britain Lives study, conducted in partnership with YouGov, found that 7 per cent of UK adults have no savings to fall back on if they lost their job. Fewer than a third (30 per cent) would only be able to live off their current savings for up to six months.
Yet, despite knowing they could be caught short on cash, almost one in five (17 per cent) admit to not planning their personal finances at all.
People in the 18 to 24-years-old age group were revealed to be the most dedicated savers. More than three in four (78 per cent) are actively saving money compared to just 67 per cent of all UK adults – with a deposit for a new home or fear of losing their job being the main reasons for doing so.
However, three in 10 (29 per cent) 18 to 24-year olds confessed to struggling when it comes to managing their money and the number not planning their finances is in line with the UK average (17 per cent).
Those nearing or in retirement are least likely to plan their personal finances in advance, with one in five (21 per cent) over 55s admitting to not planning at all.
Despite this more than half (53 per cent) of over 55s are confident in their ability to manage their money.
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.
“While it might seem like a slow uphill battle, small savings can really add up and when done regularly over a long period of time it can result in a significant sum. There are tools and accounts available to make saving easier and simple saving tricks will help set yourself up for the future.
“If you are struggling to save it’s important to keep talking and open up about any money worries with family and friends as this can help with easing financial strains or fears. We’ve recently created the Lloyds Bank M-word online hub to provide a series of tips to help people feel more confident in opening up about these money worries.”