Savings warning as Britons risk a £7,000 ‘deficit’ – act now to ensure ‘financial stability’
A SAVINGS WARNING has been issued to Britons, as many are experiencing a “cash shortage” and require a boost of thousands of pounds.
Due to the strains of the COVID-19 epidemic, many people have found it difficult to save money. Others, on the other hand, have found that staying at home has allowed them to save money by reducing their spending. Despite a sizable increase in stay-at-home savings, many are still falling short of what they require to feel financially secure.
The scale of the problem was revealed in a recent analysis produced by Yorkshire Building Society in collaboration with the Centre for Economics and Business Research (Cebr).
Consumers are currently facing a savings shortage of £371 billion, according to the ‘Nation’s Nest Egg’ survey.
It was discovered that in order to feel financially secure, UK people require a £17,465 nest fund.
This means that the ordinary Briton will need an extra £7,220 to attain their goal.
Despite the fact that there is still a long way to go financially before Britons’ expectations are realized, attitudes toward saving appear to be improving.
Financial resilience has improved, moving from 44 in 2019 to 57 out of 100.
Most people would desire more money in cash savings to improve their financial resilience.
Reducing debt or deciding to own a home, on the other hand, came in second and third, respectively.
Yorkshire Building Society’s director of savings, Tina Hughes, had something to say about it.
“Despite the fact that many people have managed to save more money over the last 18 months, this new data shows just how vulnerable people’s savings are, and how far they are from feeling financially secure,” she said.
“While some people were able to save throughout the pandemic, this was not the case for everyone, and many are now more vulnerable to financial shocks than they were before.
“As a society, we recognize how difficult it is for people across the country to save for retirement, and we are committed to assisting more people in achieving financial stability.
“We are here to assist people in times of need because money worries can have a negative influence on their well-being.”
Ms Hughes went on to say that it was encouraging to see that the UK’s financial resilience had increased overall.
It is hoped that once the UK recovers from the pandemic, this will be the case.