How many Brits Have No Savings?

Millions of people across the UK are teetering on a financial tightrope, with one in 10 adults saving nothing at all, a major report has found.

The Financial Conduct Authority’s (FCA) Financial Lives survey paints a stark picture of household finances, warning that low levels of savings are leaving many vulnerable to unexpected costs and rising bills.

The findings reveal that 13 million people have low financial resilience. They are burdened with debt, lack savings, and have missed multiple bill payments.

Sarah Pritchard, from the FCA, said: “Our data shows that finances are stretched for many, with some unable to save for a rainy day.”

Despite soaring living costs and inflation, the situation has not worsened since 2022, when the FCA last conducted the survey. Nearly 18,000 adults were questioned about how they manage their money.

While financial circumstances have not deteriorated, emotional strain remains high. Nearly 12 million people say they feel overwhelmed or stressed when dealing with money.

This is especially the case for those in debt. Four in 10 adults with loans or credit said they experience anxiety and stress due to their financial situation.

Some 2.8 million people are in persistent credit card debt, according to the report.

Overall, nearly half of UK adults owe money on unsecured credit, debt not backed by assets.

Among those with unsecured debt, the average amount owed is £6,300. For people aged 18 to 34, this figure rises to £12,500 but drops to £1,300 if student loans are excluded.

Matt Dronfield, managing director of Debt Free Advice, a group of charities offering free debt support, said many people in debt are “juggling multiple jobs” but still can’t meet essential costs.

He said: “It is so common. If you’re not worried, then a friend or family member is definitely going to be.

“We know you are more likely to tell your pet than your partner or loved one about your financial situation. So, speak to an expert debt adviser about the situation that you are in.”

He urged people to seek free help, saying: “If you were worried about your health, you’d see a doctor.

“If your car wasn’t working, you’d go to a mechanic. So, if you are worried about your finances, speak to an independent debt adviser for free.”

The survey found that 10% of UK adults have no savings at all. A further 21% have less than £1,000 set aside.

The FCA said the average amount held in savings was between £5,000 and £6,000, but this masked the widespread lack of financial buffers among lower-income households.

Dronfield advised that people with little or no savings could try “paying yourself first” by saving a few pounds as soon as they receive their income.

This, he said, could build positive habits while still covering priority bills.

The survey also highlighted concerns among older adults. Some 3.8 million retirees fear they do not have enough money to last through retirement.

Meanwhile, 10 million people are struggling to access bank branches. This is particularly significant as the country shifts to digital banking, potentially leaving vulnerable groups behind.

The report also noted a sharp rise in the use of buy now, pay later (BNPL) services. Nearly 11 million people used BNPL in the last year, two million more than in 2020.

BNPL is especially popular among certain groups. Four in 10 lone parents and over a third of women aged 25 to 34 use these credit products, which are currently unregulated.

The FCA said that despite growing pressures, there are still free options available for those facing financial difficulties.

It also stressed that the overall level of financial resilience has remained steady since 2022.

Debt charities are encouraging people to act early and talk to advisers, reminding the public that seeking support does not harm credit scores and can lead to solutions with creditors.

Pritchard said: “Our data shows that finances are stretched for many, with some unable to save for a rainy day.”

The FCA urged anyone worried about money to contact debt charities or regulated financial advisers before falling deeper into financial hardship.