Staff Reporter
A recent report from the UK’s Financial Conduct Authority (FCA) reveals that one in ten people in Britain have no savings to rely on in an emergency.
The findings, published on Friday, highlight the financial vulnerability faced by millions.
According to the FCA, an additional 21% of individuals have less than £1,000 ($1,332) in savings. Furthermore, 1.6 million homeowners—about 3%—have sought assistance from mortgage or credit lenders to manage their repayments over the past two years.
This data presents a daunting picture for Britain’s banks and policymakers, who are grappling with an economy affected by inflation, a slowing job market, and global trade tensions.
In May, the Bank of England’s Monetary Policy Committee was divided on interest rate decisions, with seven out of nine members favoring cuts to make borrowing cheaper and stimulate the economy.
The FCA also reported that nearly two-fifths of adults carry unsecured debt, with a median amount of £2,500.
Sarah Pritchard, Executive Director of Consumers and Competition at the FCA, stated, “Our data shows that finances are stretched for many—some are unable to save for a rainy day, and we know that some lack the confidence to invest.”
The survey found that one-third of adults with a defined contribution pension have less than £10,000 saved, while 12% are unaware of their retirement savings.
Only 8.6% of people received financial advice on investments, pensions, or retirement planning in the past year, and approximately 900,000 adults were classified as “unbanked” in 2024, a decrease from 1.1 million in 2022.
The FCA is working to enhance access to financial services, guidance, and advice to help those struggling with debt build a more resilient financial future.
Rachael Griffin, a tax and financial planning expert at Quilter, remarked, “The FCA’s Financial Lives Survey lays bare the financial tightrope that millions are walking. It reflects a broader cultural reluctance to invest and a potential lack of confidence or understanding in navigating financial markets.”
