British savers are moving further away from financial security
The average UK adult is thousands of pounds away from feeling financially secure, as more people struggle to bolster their savings.
British adults are more than £16,000 away from achieving their financial ‘safety net’, according to analysis from money app Plum.
Savers believe they need roughly £40,300 in their savings in order to quash their money worries, but most savers have just under £24,000 saved, leaving many scrambling to find the funds to end the shortfall.
Lack of savings
For some, financial security is even further out of reach, with nearly one in four people having less than £1,000 stored away.
A further one in ten stated they had no savings at all, leaving them vulnerable to retirement poverty later in life.
A growing number of people are finding themselves forced to sacrifice saving for later life in order to pay for more pressing matters, including rent, mortgages and bills.
Rajan Lakhani, head of money at Plum, said: “Lots of people don’t feel financially secure and UK savers are conscious of the need to build up their nest eggs, ready for a rainy day.
With over 80 per cent of people still not regularly putting money into their savings, the first step is to build stronger financial habits. This doesn’t only apply to those with lots of disposable income.”
Brits feel savings stress
Nearly 50 per cent of people expressed worry over their savings, with over 20 per cent hailing it a constant source of stress, with high earners not immune.
One in five people earning over £50,000 said they consistently fret over their savings, while women also said they were more stressed over their finances than men.
This has left 16 per cent of people believing they will never hit their savings goal or feel secure, while 23 per cent believe it will take them up to ten years.
Lakhani said: “It’s never too late to take control of your finances and implement the steps needed to bring your savings goal within reach.”