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Six million people have no savings

Six million people have no savings

Category: Savings

Updated: 29/06/2011
First Published: 29/06/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Six million people in the UK are walking a financial tightrope as they have no savings in the bank.

New data from National Savings & Investments (NS&I) – popular amongst savers as it is backed by the Government – has revealed that 13% of the population have no savings.

It means that around six million people could be a job loss or an illness away from genuine financial hardship.

On average Britons are setting aside just more than 8% of their monthly pay cheques, equating to around £100 a month.

But more than a third (36%) of the population do not believe they have enough money to cope in an emergency. Looking ahead, savers are also pessimistic about their ability to save.

A quarter (25%) of Britons said they were less likely to save over the next three months.

Despite savers struggling at present, there is cause for optimism.

Encouragingly, 16-24 year olds appear particularly committed to saving money. Two fifths say they set themselves savings goals, compared to only a quarter (25%) of those aged 35-44.

This younger generation is also more confident in their ability to save in the coming months. Forty-four per cent of 16-24 year-olds said they are more likely to save in the coming months compared to just 14% of 35-44 year-olds.

"The findings show that it really doesn't matter how old you are or how much money you earn when it comes to adopting good savings habits - it seems that the older generations could learn a thing or two from these younger savvy savers," said Tim Mack, savings spokesperson for NS&I.

If you are one of the six million with no savings cushion at all, you should consider an account which allows you to put in just a small amount whenever you can.

There are a number of accounts that can be opened with as little as £1 and can be operated online, making your savings quick and convenient

They include:

Find the best savings rates for you - Compare savings accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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