One in five unsure if they can afford unexpected costs
31 January 2014
- 20% of UK consumers do not know how much they should save in order to guard against unexpected events.
- 15% of people do not know how much is in their savings account.
- 26% of savers in Q4 2013 expect to save less or stop saving all together compared with 32% 12 months earlier.
The latest Lloyds Bank Savings Report shows one in five UK consumers are unaware of the level of savings needed to guard against unexpected events, and 15% do not know how much money they currently have in savings.
It is thought that people should have easy access to a nest egg equivalent to three months’ essential outgoings1, which can act as a financial buffer to cover living costs in an emergency. However, the research shows that there is a lack of awareness of this, even though the most frequent reason for withdrawing from a savings account over the last 12 months was to pay for unexpected outgoings, with over a quarter (29%) of those who had dipped into their savings citing this reason.
Andy Bickers, Savings Director, Lloyds Bank comments:
“Despite the abundance of financial information available to British savers, a significant proportion are still unaware of the amount of money they need to hold in savings to financially survive an emergency.
“However, it is reassuring to see an increase in the number of people expecting to save more in the coming 12 months, which should boost savings levels, giving them more security for when they need it most.”