One in five people have no savings
New research by Santander has found that eleven million adults in the UK have no savings to fall back on in times of crisis.
This equates to one in five adults, and those who are saving, are saving less than they used to, Santander found.
Over the past year, the average amount saved each month has fallen 7 per cent from £112 to £105.
The study also found a wide discrepancy between the amounts saved by men and women.
While men are managing to save around £128 a month, women are only saving around £83.
However, the situation looks set to improve, with 23 per cent of those surveyed saying they hoped to increase the amount they saved over the next few months.
Younger savers were even more optimistic about future savings, with 43 per cent of people between the ages of 18 and 34 years saying they planned to save more.
Matt Hall, head of savings at Santander, said: “The fact that people are saving slightly less this year than last is in-line with expectations, as household budgets continue to tighten but living costs still edge upwards.”
Separately, Moneyfacts.co.uk has highlighted the problem of savings being eroded by inflation and tax.
With most savings accounts failing to protect savings against inflation, Moneyfacts warned that savings have been eroded by 8 per cent in five years.
The latest figures from the Office for National Statists revealed that inflation fell from 3.1% to 2.8% in May.
Sylvia Waycot of Moneyfacts.co.uk said: “Today’s rate of inflation means hundreds of thousands of savers need an account paying a hefty 3.50% before they earn a real rate of return on their savings.
“Yet, the average no notice savings account only pays a disappointing 1.05% showing the size of the problem many are facing.”