Research from The Exeter, which surveyed around 2,000 adults, found that 10% have less than £500 available to cover essential expenses and 14% said they have no savings at all.
The report found that those aged 45-54 years old are most at risk, with 54% having under £2,500 saved and 21% having nothing to fall back on. This is the highest of any age bracket.
This challenges the assumption that younger adults are the least financially prepared, with those aged 25-34 reporting average savings of £14,123 – nearly double the £7,961 held by 45-54-year-olds.
Despite the low levels of savings, nearly a third of adults said they would still be reliant on their own savings if they were unable to work because of illness or injury.
A fifth said they would turn to company sick pay, 17% would rely on their partner’s income and 12% would look to state benefits.
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Only 8% said they would depend on family or friends for financial help, but this rose to nearly a third for those aged 16-24.
This compares to 20% of 45-54-year-olds who would use a partner’s income, which The Exeter said shows younger and mid-life groups would remain financially exposed if earnings were to cease.
Jamie Page, head of protection distribution at The Exeter, said: “These 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.
“Illness 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’s never been more important that UK workers have access to financial advice and tools to help them become more financially secure, whether that’s by reducing bills, scheduling regular savings, or taking out protection policies to offer a safety net around their income.”
