New data from protection and health insurer the Exeter has revealed that 40% of workers over 18 are saving less than £100 in a typical month, with 14% unable to save anything.
The Exeter has launched its latest research, Challenging Times: The health and financial fears of UK workers, examining the range of concerns employed and self-employed adults have regarding their health and financial security.
When asked about how much they could afford to save in a typical month, 20% of those aged 45-54 and 19% aged 55-64 reported that they saved nothing at all, the highest proportion of any demographic. The Exeter says this is particularly worrying given that these age groups are closest to retirement and lack many options available to younger generations to secure a higher income.
Respondents in London were most likely to save more than £100 in a typical month, with only 20% saving less than this. Conversely, almost half of respondents in Yorkshire (47%) and East England (45%) reported saving less than £100 – over twice that of Londoners.
The cost-of-living crisis is impacting consumer behaviour, with 81% of the working population reporting that they have changed their spending habits because of rises in energy prices, inflation, and national insurance.
52% of respondents were concerned about being able to pay for food or utility bills, and 44% were worried about keeping up with rent or mortgage repayments.
When it comes to cutting back on expenses, 49% are spending less on the weekly shop, 44% are reducing their utility usage, and 41% are spending less on leisure and entertainment.
65% of people reported that they were worried about not saving as much as they would like each month highlighting that the importance of having a financial safety net is not lost on UK workers. The challenge, however, remains that as the cost-of-living increases further, people’s ability to save will likely reduce.
Isobel Langton, chief executive at the Exeter, said: “We wanted this research to examine the many pressures working people in the UK are dealing with, but the level of financial and health fears we have uncovered has revealed the true scope of the challenges they face.
“With so many people in the UK worried about saving enough and, with living costs continuing to rise, the speed at which someone can fall into debt could also increase. While there are helpful financial guides and tools available, for example from the government, we need to ask ourselves what more we can do to help people weather this storm.
“Arguably the financial services community is best placed to provide advice and support. From insurers and financial advisers to mortgage lenders, finance influencers, and savings experts – we each have a role to play. Within our individual businesses and collectively as an industry, we must come together and collaborate to ensure that we provide the best possible outcomes to help guide people through the challenges they face.”
