THREE IN TEN WORKERS WOULD RUN OUT OF MONEY IN UNDER A MONTH IF THEY WEREN’T GETTING PAID
Three out of ten (30%) working people in the UK could only manage for up to a month financially if they had to rely on their savings to cover their outgoings, new research reveals.
The research from Yorkshire Building Society also found that a quarter (26%) of workers said they had less than £500 in savings.
The results also highlighted the issue affects younger people most severely, with 40% of 18 to 34-year-olds in work unable to manage more than a month if they found themselves without their salary.
The Yorkshire surveyed people across the country as part of its ongoing campaign to improve financial resilience – with a goal of getting an additional 1.8 million non-savers to start putting money away by 2024.
The Covid-19 pandemic has intensified issues around financial wellbeing in the working population, as well as one fifth (21%) admitting to saving nothing on a monthly basis, more than one in ten (15%) have increased the amount of debt they have over the previous 12 months, and a quarter (26%) have had to borrow from family or friends during the period.
Almost half of working Brits (49%) said they feel stressed about their financial situation but less than one in twenty (3%) would turn to their employer for financial advice and support.
The Society is urging employers to take a greater role in supporting their employees and to treat financial wellbeing on a par with physical and mental health.
Tina Hughes, director of savings at Yorkshire Building Society, said:
We continue to struggle to save as a nation, as a result of which the everyday challenges that people face can have real impacts on peoples wellbeing.
This doesn’t just cause problems with meeting unexpected bills or dealing with a loss of income due to sickness or unemployment. Money worries can affect all aspects of peoples’ lives which is why we want to continue to help people build a healthy savings pot and improve their financial wellbeing to protect themselves from any sudden and unexpected changes to their situation.
There’s clear evidence that low financial resilience can have an impact on mental health. We want to help workers who aren’t saving to start putting away money. This will benefit everyone because increasing the nation’s financial resilience has clear benefits for the economy and for employers.
One of the things the Covid-19 pandemic has demonstrated is that anyone could find themselves in financial difficulties and may need to rely on savings.
The Society has a range of support tools available online for people to budget and take practical steps to saving more.