New research, conducted by the Money and Pensions Service, has found one in six adults in the UK have no savings at all, with a quarter of UK adults having less than £100 set aside. The Money and Pensions Service (MAPS), spoke to 3,000 adults in the Uk as part of their research.
This is worrying news as the cost-of-living crisis grows ever deeper, leaving many people vulnerable to rising bills. Similarly, any unexpected bills could cause great financial stress for many.
Millions of Britons are facing ever-growing financial strain, without any sort of monetary safety net to fall back on. This means many may borrow money to cause extra costs, causing even great anxiety about their current financial situation.
The research further showed the great strain people are under currently, with 5% of those surveyed having less than £50 in savings, and a further 4% having between £50 and £100 put aside for emergencies.
using up savings
Although millions of people are likely to have no financial buffer to support them throughout the current crisis in the UK, the idea of saving any money will be at the back of many people’s minds. According to the Building Societies Association (BSA), 35% of people have stopped saving money due to the ever-soaring cost of living.
Additionally, 36% of those surveyed said they were currently dipping into any savings they did have in order to survive the rising bills, fuel and food costs.
With borrowing from friends, family and banks ever-growing, debt advisors suggest they are expecting an increase in enquiries over the winter months, as people struggle to fund the everyday essentials, such as energy bills and food.
Two in five people who have borrowed money already say they are anxious about how much the owe. Many credit unions, however, are offering various ways to help those struggling, particularly throughout the more expensive periods of the year.
Talk money week
The research by MAPS also showed some worrying statistics. According to the survey, 81% of people said they avoided talking about their finances. 21% of those questioned said they were worried about being judged, and a further 19% feared placing their financial burdens on others. 17% mentioned shame or embarrassment as a reason for not discussing money.
MAPS , who run the MoneyHelper website, try to encourage people to open up about money, and talk with their loved ones about their finances. This week is Talk Money Week, a week-long campaign urging people to open up.
The MoneyHelper website has a free debt advice tool, and MAPS are encouraging as many people as possible to take this free debt advice sooner rather than later.