Over two fifths (42%) of UK adults say the increase in the cost of living has meant that they have reduced or stopped any regular savings.
A new survey of 2,000 UK adults was conducted by WEALTH at work, a leading financial wellbeing and retirement specialist and looked at people’s savings habits. It revealed the importance of saving is recognised by many, with a third (33%) saying that they regularly cut back on spending to make sure they add to their savings.
However, nearly half (45%) of UK adults say that they prefer to save what they have left at the end of the month rather than have savings come out at the start of the month. As spending increases with the cost of living, it is no surprise that people will have less available at the end of the month to save.
Half of UK adults (52%) are confident that they have enough savings set aside for emergencies, but the survey also found that half (50%) of UK adults know they should be saving more, not just for emergencies.
Jonathan Watts-Lay, Director, WEALTH at work, comments; “It’s very concerning that people are having to reduce or completely stop their saving in an attempt to free up money to pay for ever increasing bills. Many people do understand the importance of saving, and are careful with their spending to ensure they can add to their savings, but it appears that this is a something many can no longer afford.”
He explains; “It is completely understandable that people are having to cut back on their savings, but instead it may be better to reduce how much they save to what they can still afford rather than stopping it completely. Saving money is a habit, and once you stop it, it is very difficult to start up again.”
He comments; “Make sure you check all your outgoings to find other ways to save money e.g. cancelling any unused subscriptions or memberships, shopping around for better deals on TV, broadband and mobile suppliers, and switching brands on your regular shop. Also, discount vouchers are often available online, and you may have access to discount vouchers through your employer.”
Watts-Lay adds; “Many workplaces are now offering financial education and guidance to help individuals look after their money in a crisis, so it’s always worth asking what support is available to help you.”
The survey of 2,000 UK Adults was carried out by Opinium from 8 – 11 April 2022.