Survey shows the ‘further widening of the financial wellbeing gap in the UK’
Nearly one fifth of adults hold less than £100 in savings, a survey has revealed.
In a sign that financial inequality may be widening, around the same proportion of people have increased the amount they are saving on a monthly basis during the pandemic.
Yorkshire Building Society conducted the survey, which found that 19% of adults had less than £100 saved, while 21% of people were not saving at all.
13% of people have zero savings to their name and over 26% of people have less than £500 stored away.
On the other hand, 17% of people who took part in the survey said they were able to reduce their debt levels during 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.”
People’s financial situation often has a direct impact on their mental health, as 22% reporting trouble sleeping due to the fact they are concerned about money.
Hughes added: “Now more than ever, with current and potential future economic uncertainty, it’s important for people to try to build their financial resilience and for us as a society to help people to save.
“Money worries can make people anxious, so we want them to know they don’t have to suffer in silence and we’re here to help them to manage their money during difficult times.”
Baby Boomers and Gen Xers have given out £8.2bn to family during the pandemic, with 25% of over 50s lending an average of £1,300 each.
More than half of parents and grandparents raided their savings to do so according to a separate survey.