Millions in UK have less than £100 in savings
The research by the Money Advice Service shows that 4 in 10 (40%, 16.8 million) working-age people across the nation lack a savings buffer, with less than £100 in savings available to them at any time.
These worryingly low levels of savings mean that huge numbers of people are vulnerable to unexpected bills or unplanned expenses that may have serious consequences on their financial stability.
Unforeseen expenses are an unfortunate fact of life, with nearly three-quarters (71%) experiencing at least one a year. With so many lacking the savings to cover these expenses, large numbers of people are likely to turn to credit or borrowing from friends and family to cover these costs.
For low income earners, saving presents a particular challenge. If household finances are already stretched to make ends meet then saving may simply not be an option, particularly for families with children and those paying down debt.
However, low income earners can and do save. The research showed that 23% of working-age adults on a household income of less than £13,500 have more than £1,000 in savings and 40% save every/most months. ■