About one in seven (14 per cent) said they had no savings whatsoever, while even among those aged 45-54, an age span usually considered around the peak earning years for workers, more than half (54 per cent) had less than \u00a32,500 available to them should they suffer a loss of income.<\/p>\n
The research was undertaken by insurance firm The Exeter, with the results suggesting many individuals or families could struggle significantly in the event of any sudden economic shock.<\/p>\n
Most finance experts recommend attempting to gradually build up an emergency pot of savings<\/a> equivalent to between three and six months\u2019 costs, depending on circumstances – those living with parents and few bills might need considerably less than homeowners with children, for example.<\/p>\n As a very rough guide, with the UK average salary being \u00a335,000, take-home pay from that could be in the region of \u00a32,300 monthly. Using the 70-20-10 budgeting technique<\/a>, it means three months of absolutely essential costs would suggest a \u00a35,000 savings pot is the minimum required starting point.<\/p>\n However, the 2,000-person survey found that almost half (47 per cent) had less than \u00a35,000 in emergency savings, leaving them vulnerable if they were unable to work, if they were landed with unexpected bills or if their regular costs went up significantly.<\/p>\n \u201cThese findings underline how even those in the middle of their careers, often at the peak of their earning powers, increasingly have limited savings to fall back on if they were to lose their income,\u201d said The Exeter\u2019s Jamie Page.<\/p>\n \u201cIllness or injury can strike at any time and, without a financial buffer, even short periods out of work can create financial strain for UK households. It\u2019s never been more important that UK workers have access to financial advice and tools to help them become more financially secure, whether that\u2019s by reducing bills, scheduling regular savings, or taking out protection policies to offer a safety net around their income.\u201d<\/p>\n The concerns over middle aged workers may not be limited to just their bank balances, but wider financial wellbeing too, if additional new research is factored in.<\/p>\n Get a free fractional share worth up to \u00a3100. Terms and conditions apply.<\/p>\n![\"Trading](\"https:\/\/static.independent.co.uk\/static-assets\/images\/mobile-stores\/Trading_212.svg\")
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