Over 55s Are The Worst At Not Saving Enough

Lisa Smith, BA (Hons), CeFA

Millions of people are failing to save enough and barely have enough cash to see out a month if they lost their jobs, according to new research.

One in three adults do not save enough regularly and one in five do not have enough money to survive for a month if they lost their job.

Surprisingly, workers under 25 years old are the best at saving, while the over 55s are the worst at sorting out their finances, says the study by Lloyds Bank.

Most disturbingly, says the bank, one in 14 people have no savings.

Young adults are the best savers

The dire analysis of the state of saving also found that only 30% of people could live off their savings for up to six months.

Most people understand that they are short of cash for saving, but a fifth have done nothing to change their plight.

Saving for a house deposit or the fear of losing a job has prompted 78% of workers aged under 25 to plough money into savings, compared to the UK average of 67% across all age groups.

Most over 55s (53%) are confident that they can manage their money, even though 21% says they do not plan or budget.

Millions at risk

Jo Harris, managing director at Lloyds Bank said: “Millions are at risk of not having savings to fall back on should they lose their job or have to stop working. Being prepared for these unexpected circumstances as well as starting to save for the future can sometimes feel daunting, particularly for those on lower incomes unable to put away large sums.

“While it might seem like a slow uphill battle, small savings can really add up and when done regularly over a long period of time it can result in a significant sum. There are tools and accounts available to make saving easier and simple saving tricks will help set yourself up for the future.

“If you are struggling to save it’s important to keep talking and open up about any money worries with family and friends as this can help with easing financial strains or fears.”

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