10.5m Brits could not last another month without income
One in five of adults in the UK could not support their household for one month if they lost their source of income, a report revealed.
After a third lockdown gripped the nation, 10.5m British adults have been found to have no financial buffer, digital financial coaching app Claro said today.
With financial strain disproportionately impacting younger generations, the Claro report found that one in three 18 to 24-year-olds could not support themselves for a month if made unemployed.
The data showed that 41 per cent of young people have already fallen short on their living costs in the last year.
Head of financial planning at Claro Rachel Harte said: “It is concerning that 10.5m adults in the UK have no financial safety net to fall back on – and even more worrying that it is the youngest generation struggling the most.”
“With 1 in 3 unable to support themselves for longer than a month without their regular income, it’s good for Generation Z to start making good money habits early. A little forward planning goes a long way and can prevent unnecessary stress in the future,” Harte added.
Claro said British households are not prepared for financial uncertainty in 2021 as the impacts of Covid and Brexit collide.
“Many across the UK may feel they have no money to spare to put into savings – which is particularly true of those who have had wages cut – and that’s understandable in the current climate.
“However, even if it might not seem like it – the smallest amount put aside regularly can eventually build up to provide a safety net for the future,” Harte said.