19-05-2025
Warning as figures show one in 10 UK adults have no savings at all
Warning as figures show one in 10 UK adults have no savings at all
Millions of people are vulnerable to rising bills and other economic shocks, according to the the Financial Conduct Authority's (FCA) Financial Lives survey
(Image: Getty )
One in 10 adults in the UK are saving no money at all, a new report has found. That means millions of people are vulnerable to rising bills and other economic shocks, the Financial Conduct Authority's (FCA) Financial Lives survey warned. Debt is also causing relatively high levels of anxiety and stress levels, especially for those with debt. The regulator said free help was available though and the situation has not got worse since the start of the cost of living crisis. The FCA's Financial Lives survey is viewed as a benchmark for the state of the nation's finances, with nearly 18,000 people responding to questions about how they manage their money.
It is suggested by the surbey's results thay 13 million people - a quarter of the UK adult population - have limited financial safety meaning they have hard to manage debts, scant savings, and have missed a series of bill payments, the BBC reports.
That had not changed since the last Financial Lives survey, published in 2022, despite rising inflation and bills. Around one in 10 of those asked had no savings at all while another 21% had less than £1,000 saved.
Other findings in the report include:
2.8 million people have persistent credit card debt
Nearly 12 million people feel overwhelmed or stressed dealing with financial matters, including 40% of adults with credit or loans saying they suffer anxiety and stress
3.8 million retired people fear they don't have enough money to last their retirement
10m people face difficulties getting to a bank branch
"Our data shows that finances are stretched for many - with some unable to save for a rainy day," said Sarah Pritchard, from the FCA.
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Use of buy now, pay later (BNPL) had "risen significantly" in recent years with almost 11 million people using BNPL in the last year, which was two million more than the previous survey of three years ago. Arounds 40% of single parents and 35% of women aged between 25 and 34 use these deferred credit products, which are unregulated.
Nearly half of adults have outstanding unsecured debt with the cash borrowed not backed up by assets.
The FCA said the median average amount of debt outstanding among those with debt was £6,300. For 18 to 34-year-olds with debt, the median average amount of debt outstanding was £12,500. but that dropped to £1,300 if student loans were excluded.
Debt advisers report routinely talking to people with mental health issues which are either the result in financial difficulties or sparked by money worries.
Matt Dronfield, managing director of Debt Free Advice - a coalition of charities which can talk to and negotiate with creditors on behalf of borrowers - said rent or mortgage arrears, council tax and falling behind on utility bills were the three most common forms of debt.
Many of those who call for help were working multiple jobs but still couldn't coverr essential expenses.
"It is so common. If you're not worried, then a friend or family member is definitely going to be," he said.
"We know you are more likely to tell your pet than your partner or loved one about your financial situation. So, speak to an expert debt adviser about the situation that you are in.
"If you were worried about your health, you'd see a doctor. If you're car wasn't working, you'd go to a mechanic. So, if you are worried about your finances, speak to an independent debt adviser, for free."
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He advised people with no savings should consider "paying yourself first", by putting a few pounds into a savings account when they are paid or when any money comes in.
That could help them get into the habit of saving cash while still being able to pay their priority bills. The average amount people have saved is £5,000 to £6,000, the FCA's report suggests.
