More than one-third of people with savings have recently needed to dip into this money to make an essential payment, according to a survey.
Some 35% of people with savings had used some of this cash to make an essential payment within the previous month, the research carried out from late December to early January found.
Four-fifths (80%) of people with savings said they were depending on this money to get them through the cost-of-living crisis, according to the survey commissioned by Aldermore bank.
Just over three in 10 (31%) savers said their financial situation is not sustainable, while nearly half (46%) worry about their financial future, the survey of 4,000 people across the UK by Opinium Research found.
Households are doing their best to put away what they can, despite difficult circumstances— Ewan Edwards, Aldermore
Meanwhile 30% of people said they had saved nothing in the past 12 months, an increase from 25% when research was carried out a year earlier.
Most non-savers (58%) said they are finding it difficult to put money aside due to the rising cost of essential bills.
Despite this, just over two-fifths (41%) of savers felt they were saving enough.
Ewan Edwards, director of savings at Aldermore said: “The pinch that many people are feeling because of rising living costs is understandable.
“Our research shows that households are doing their best to put away what they can, despite difficult circumstances, and this should be commended.”
He added: “Our research shows that seven in 10 (68%) UK adults agree that all banks and building societies should be obliged to pay a minimum rate of interest to savers, so this could encourage those who aren’t saving to start.”
Here are some tips from Aldermore for building a savings fund:
1. Check your savings rate. Savings rates have increased recently, so shop around for the right product for you.
2. Try to save regularly and consistently. Track your savings to ensure you are sticking to your goals.
3. Cancel any little-used subscriptions which may be draining your potential to save. If it is affordable to pay a lump sum up-front, some subscriptions may work out cheaper by paying annually rather than monthly.
