A recent study reveals more than 11 million Britons have savings of less than £1,000. Euronews looks at the figures and takes a look at the situation across the rest of Europe.
One in three working-age adults in the UK have less than £1000 (€1175) in their savings account, according to new report from Resolution Foundation.
This means that more than 11 million people may have difficulties facing unexpected “rainy day” moments, such as family crises or not being able to put enough money away for retirement.
The cost of living crisis has left individuals with small amounts of savings having to borrow in their hour of need. Even those with more than £1000 in savings – some 18% – said they used credit cards, overdrafts, or borrowed from formal lenders to cover daily living expenses between July 2023 and October 2023.
Resolution Foundation also found a direct link between low savings and poor mental health. When savings are low, it can lead to anxiety and a decline in mental well-being. Conversely, worsening mental health might make it harder to save, possibly due to its impact on earnings.