Cost of living: Four in 10 UK adults save less than £100 a month, study shows

·Contributor
·2-min read
The increase in prices has led to a cut back in household spending as people struggle to save. Photo: Getty
The increase in prices has led to a cut back in household spending and saving. Photo: Getty

Nearly 40% of workers in the UK are saving less than a £100 ($115) per a month as the cost of living puts a further squeeze on pockets, a study has found.

Of those aged 45-54, 20% reported that they saved nothing at all, with 19% of those aged 55-64 saying the same, according to insurance company The Exeter.

The study also shows that the cost of living crisis has impacted expenses, as 81% of workers admitted they have had to change their spending habits due to rising inflation, energy prices and national insurance.

The study, titled ‘Challenging Times’, examined how workers were coping with the crisis.

Read more: Millions falling short of decent standard of living amid cost of living crisis

It found that over half (52%) of UK workers surveyed were concerned about being able to pay for food or utility bills, and that 44% are worried about being able to pay rent/mortgage bills.

Regionally, those in London were more likely to save more than £100 per month, with only 20% saving less than this.

Meanwhile, those in Yorkshire (47%) and East England (45%) were saving less than £100 a month. That was over double the amount of London.

The increase in prices has has led to a cut back in expenses with 49% of workers spending less on weekly shopping, 44% on utility usage and 41% on leisure and entertainment.

“We wanted this research to examine the many pressures working people in the UK are dealing with, but the level of financial and health fears we have uncovered has revealed the true scope of the challenges they face.” Isobel Langton, chief executive of The Exeter said.

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“With so many people in the UK worried about saving enough and, with living costs continuing to rise, the speed at which someone can fall into debt could also increase," she added. "While there are helpful financial guides and tools available from the government, we need to ask ourselves what more we can do to help people weather this storm.”

Watch: How to save money on a low income