One in three has ‘less than one months' income saved’
A study conducted from figures raised in the Lloyds Bank Savings Index has found that one in three workers in the UK has less than one months’ wages put aside for emergency costs.
The survey found that, despite the fact that the economy is improving, savings levels in the UK remain low. In fact, exactly half of those surveyed (50%) said that they had less than two months’ wages saved for a rainy day, while 34% said that they had failed to put aside just one months’ wages.
This is despite the fact that there seems to be a general appreciation of the importance of having an emergency fund to fall back on among workers. Just under half of those surveyed (48%) said that they thought they would need at least two months’ wages put aside in the event of an emergency. At the same time, one in five (21%) people think that they would need a minimum of four months’ wages in order to cope financially in the event of an emergency.
The main reason for people failing to adopt a regular savings habit was the fact that they didn’t have any spare money remaining at the end of a working month, according to the research.
Paying off personal debt was another reason people gave for not saving, with 82% saying this was of higher importance to them than saving money. However, the report also highlighted the fact that the vast majority of workers do realise the importance of regular saving. 84% of those surveyed said that they agree that it is important to save regularly, even if they are unable to do so.
Director of savings at Lloyds Bank, Philip Robinson, said: “With the lack of spare money at the end of the month a clear worry for consumers, it is reassuring to see such high levels of savers keen to put money aside for a rainy day”.
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
Share this..
Related stories
Look after the pennies and the pounds will look after themselves
There are many sayings in the financial industry and one which is sometimes ridiculed is "look after the pennies and the pounds will look after themselves". However, if you take a step back and review this particular saying you may well begin to understand exactly where it comes from! While the vast majority of us will at some time look to save money on our monthly budgets and household expendi...
Read MoreAre your building society savings safe?
Today's report from Moody's and the subsequent reduction in debt ratings has caused major concern among those with investments and savings in the UK building society sector. While the Building Societies Association has come out in of support the sector as a whole, suggesting that the report from Moody's is "over pessimistic", the fact that the red pen has been taken to the sector as a whole is wor...
Read MoreRenewed rise in inflation puts pressure on savings
News this week that inflation has picked up to 1.5% from 1.1% has been broadly welcomed by analysts and researchers because ultimately it means in the short term that the UK economy is showing signs of life. However, putting aside the potential problem of increased inflation, there is also concern for those with significant savings in the UK who are currently attracting minimal interest rates....
Read MoreFraudsters target premium bond accounts
In a disturbing development for many savers in the UK it has been revealed that fraudsters are targeting premium bond account holders with a very basic yet potentially lucrative scam. The scam hit the headlines after a Times newspaper reader had his Halifax account blocked after he deposited a premium bond cheque. The customer in question took £2,000 from its premium bond account and went straigh...
Read MoreBanks introduce stepped savings interest rate bonds
As UK base rates look set to continue to remain relatively low in the short to medium term a number of banks have stepped forward with stepped savings interest rate bonds. In effect these bonds will offer a guaranteed interest rate in year one which will step up in year two, year three, year four and year five. However, experts have warned investors to check out the quality of the providers as wel...
Read More