New research from Lloyds Bank has revealed 27 per cent of Brits were not able to save anything in the 12 months to August, citing the rising costs of living as their main obstacle.
Released to coincide with World Savings Day, the research also revealed nearly two thirds of Brits are unsatisfied with how much they have saved while half of us are “anxious, worried, or insecure” about our level of savings.
Of low income households bringing in less than £200 per week, more than half (52 per cent) have no savings at all.
The survey of over 2,000 UK adults also showed the amount of people saving regularly has decreased throughout 2017, from 35 per cent in the first and second quarter of the year to 31 per cent in August.
Respondents blamed housing costs for their lack of saving, with more than a third (35 per cent) of those who have not saved in the last 12 months saying they feel that the cost of living has increased.
Lloyds also found of the 35 per cent of Brits who have withdrawn money from their savings account in the last 12 months, nearly a quarter have used the money to cover day-to-day living expenses.
The research underlines the increasing financial pressure that Brits are under, with inflation running well head of wage growth at 2.9 per cent compared to 2.2 per cent respectively.
When accounting for inflation, recent data showed that wages have in-fact fallen over the past decade. Meanwhile housing, transport and food prices have continued to spiral upward.
However, the Lloyds research also showed a good proportion of people using their savings for ‘luxuries’, with 32 per cent of Brits who have taken money from their savings account in the last 12 months using it to pay for a holiday.
Mark Rawcliffe, Head of Savings Products, Lloyds Bank said: “Saving a little each month doesn’t have to be a daunting thought. I’ve been encouraging my own children to ‘spend a little, save a little’ of their pocket money each month, as I was told to do when growing up.
“Starting the savings habit early is a good way to prepare for a rainy day and make sure that you and your family are covered should something unexpected happen.”