One in seven workers are unable to save anything in a typical month, according to research from the Exeter.
The protection and health insurer’s survey of 2,000 employed and 2,000 self-employed adults also revealed 40% of workers aged over 18 are saving less than £100 in a typical month.
Two in 10 of those aged 45-54 and 19% aged 55-64 reported that they saved nothing at all, the highest proportion of any demographic.
Respondents in London were most likely to save more than £100 in a typical month, with only 20% saving less than this amount. Nearly half of respondents in Yorkshire (47%) and East England (45%) reported saving less than £100 – over twice the number of Londoners.
More than eight in 10 (81%) of respondents reported that they have changed their spending habits due to rises in energy prices, inflation, and national insurance.
Just over half (52%) were concerned about being able to pay for food or utility bills, and 44% were worried about meeting rent or mortgage repayments.
In terms of cutting back on expenses, 49% are spending less on the weekly shop, 44% are reducing their utility usage, and 41% are spending less on leisure and entertainment.
Almost two thirds (65%) reported that they were worried about not saving as much as they would like each month.
Isobel Langton, chief executive at The Exeter, (pictured) said: “We wanted this research to examine the many pressures working people in the UK are dealing with, but the level of financial and health fears we have uncovered has revealed the true scope of the challenges they face.
“With so many people in the UK worried about saving enough and, with living costs continuing to rise, the speed at which someone can fall into debt could also increase. While there are helpful financial guides and tools available, for example from the government, we need to ask ourselves what more we can do to help people weather this storm.
“Arguably the financial services community is best placed to provide advice and support. From insurers and financial advisers to mortgage lenders, finance influencers, and savings experts – we each have a role to play. Within our individual businesses and collectively as an industry, we must come together and collaborate to ensure that we provide the best possible outcomes to help guide people through the challenges they face.”
