Over a third of Britain’s workforce has less than month’s salary in savings, new research from Neyber has found.
The study, carried out among 10,000 UK employees, found that almost one in seven (14 per cent) of working Brits have no savings whatsoever.
This savings shortfall means that many people in the UK would be unable to cope with an unexpected income shock, such as divorce, bereavement, redundancy or illness.
Heidi Allan, head of employee wellbeing at Neyber said: “With so little money to fall back on, something as simple as a car repair could leave people struggling to cope
“It is critical that people have some way of paying for smaller things like unexpected bills, as well as protection policies in place for bigger problems such as losing a job, otherwise small income shocks could lead to Britain’s workers spiralling into debt.”
The research found that most Brits had experienced difficult situations in the past two years. These ranged from mental health issues (18 per cent) to divorce (14 per cent), serious accidents (8 per cent) and job loss (19 per cent).
Despite this, many Brits have no immediate plans to address their lack of savings. Almost a fifth (18 per cent) are not setting aside any of their monthly earnings.
For lower earners (those with salaries between £10,000 and £19,999) that figure is far higher, with 26 per cent of people saving nothing whatsoever out of their wages.
Those who do save were putting aside £310 a month on average. The 65+ group saved the most, putting aside £350 a month, while 45-54 year olds saved the least, putting aside just £282 a month.
The average pot among those who do save is £10,468.06
The most common way to save was in a bank or building society – over half of the 10,000 people surveyed saved in this way. But just under a quarter of people had savings in a jar at home.