Britons' Nest Eggs Are Vanishing Amid Rising Costs, Leaving Many Financially Vulnerable
For many middle-class Britons, saving for the future has become a distant memory. With the cost of living soaring out of control, the prospect of building up a nest egg or pension pot seems like an impossible dream.
Take Andrew, a writer in his mid-30s from Essex, who has managed to save just £4,000 into his savings account and another £4,000 into stocks and shares. Despite having a mortgage, childcare fees, and other living expenses to cover, his monthly outgoings always exceed £2,800. If he were to lose his income, "our savings would quickly vanish," he said.
Andrew's situation is not unique. Many people who contacted the Guardian reported struggling to save due to rising costs such as high rents, mortgage payments, childcare, or student loan repayments. The personal savings rate of UK households reached a record high in 2020, but since then, households have faced high interest rates and a persistent cost of living crisis.
The numbers are stark: according to Finder, the average person in the UK has just £16,067 in savings, while 39% of people have £1,000 or less. A staggering 23% have even fewer than that – no savings at all.
Ryan, 30, from Glasgow, is one such individual who has managed to save nothing. "I have saved exactly £0," he said. "If anything goes wrong, I am screwed." He explained that some months he even goes without food, as all his money goes towards bills. His social life and ability to do anything for fun have become non-existent.
While some people, like Robert, an insurance professional from Birmingham, are able to save £95,000 into their emergency fund by living extremely frugally and forgoing leisure experiences, many others feel the same financial insecurity.
Carrie, a customer services worker in her 40s from Manchester, has managed to build up a salary sacrifice pension pot of £70,000. However, she was among those who reported having "zero savings" for emergencies due to unforeseen circumstances. Her husband lost his job while waiting for an NHS referral, and if Carrie were to lose her income, they would have to sell their belongings and move in with either her or her husband's mother.
The high cost of living is particularly crippling in big cities like London, where people often need to be for work. Kira, a 28-year-old communications manager from London, has £1,500 in savings – just enough to cover her expenses for a month. She resents having to pay £800 a month to live in a shared house with four other people and being unable financially to move in with her boyfriend.
For many Britons, the prospect of building up a nest egg or pension pot seems like an impossible dream. As Neal, 43, from North Yorkshire, explained, "I'm constantly worried about money." He has managed to save £6,000 so far, equivalent to four months' outgoings, but is acutely aware that this all depends on getting his monthly pay cheque and feel that is increasingly uncertain, given these difficult times.
For many middle-class Britons, saving for the future has become a distant memory. With the cost of living soaring out of control, the prospect of building up a nest egg or pension pot seems like an impossible dream.
Take Andrew, a writer in his mid-30s from Essex, who has managed to save just £4,000 into his savings account and another £4,000 into stocks and shares. Despite having a mortgage, childcare fees, and other living expenses to cover, his monthly outgoings always exceed £2,800. If he were to lose his income, "our savings would quickly vanish," he said.
Andrew's situation is not unique. Many people who contacted the Guardian reported struggling to save due to rising costs such as high rents, mortgage payments, childcare, or student loan repayments. The personal savings rate of UK households reached a record high in 2020, but since then, households have faced high interest rates and a persistent cost of living crisis.
The numbers are stark: according to Finder, the average person in the UK has just £16,067 in savings, while 39% of people have £1,000 or less. A staggering 23% have even fewer than that – no savings at all.
Ryan, 30, from Glasgow, is one such individual who has managed to save nothing. "I have saved exactly £0," he said. "If anything goes wrong, I am screwed." He explained that some months he even goes without food, as all his money goes towards bills. His social life and ability to do anything for fun have become non-existent.
While some people, like Robert, an insurance professional from Birmingham, are able to save £95,000 into their emergency fund by living extremely frugally and forgoing leisure experiences, many others feel the same financial insecurity.
Carrie, a customer services worker in her 40s from Manchester, has managed to build up a salary sacrifice pension pot of £70,000. However, she was among those who reported having "zero savings" for emergencies due to unforeseen circumstances. Her husband lost his job while waiting for an NHS referral, and if Carrie were to lose her income, they would have to sell their belongings and move in with either her or her husband's mother.
The high cost of living is particularly crippling in big cities like London, where people often need to be for work. Kira, a 28-year-old communications manager from London, has £1,500 in savings – just enough to cover her expenses for a month. She resents having to pay £800 a month to live in a shared house with four other people and being unable financially to move in with her boyfriend.
For many Britons, the prospect of building up a nest egg or pension pot seems like an impossible dream. As Neal, 43, from North Yorkshire, explained, "I'm constantly worried about money." He has managed to save £6,000 so far, equivalent to four months' outgoings, but is acutely aware that this all depends on getting his monthly pay cheque and feel that is increasingly uncertain, given these difficult times.
it's crazy how the cost of living crisis is affecting ppl like Andrew & Ryan who are literally struggling to make ends meet 
with £4,000 saved between them & still having to scrape by 
meanwhile, others like Carrie r trying their best but life just threw 'em a curveball 
saving for the future seems impossible atm 
it's like we're living paycheck 2 paycheck 
what can ppl do? is there even a safety net anymore? 
. I feel bad for Andrew and Ryan, who are facing financial insecurity due to rising costs 
I mean, what's going on with the cost of living in the UK? It's like, how are people even supposed to save for a rainy day when they're barely scraping by from one month to the next? I've got £1,500 in savings too and it's just enough to cover my expenses, but that's not even a safety net anymore. It's all about living paycheck to paycheck and stressing about money 24/7. And don't even get me started on those people who have zero savings... it's like, what happens when they do lose their job or have an emergency? 
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. For instance, Ryan's situation, not being able to afford food because all his money goes towards bills? That's a nightmare scenario 
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i mean, £1,500 in savings is basically nothing 
. how can we expect people to plan for the future when they're struggling to make ends meet? 
. It's like they're living paycheck to paycheck with no safety net. I mean, £4,000 is not even a drop in the ocean for most people. And it's not just about the money, it's the stress and anxiety that comes with it. I feel bad for Ryan, he's literally living without any savings at all 
. It's no wonder ppl like Ryan are going without food just to pay bills 
. The cost of living is OUT OF CONTROL 
and ppl are getting left behind 
. Even those who manage to save some cash, like Robert, are living in extreme frugality 
for someone with a £2,800 monthly outgoings 
. £16,067 is basically nothing these days, right? 
And Carrie's situation with her husband losing his job and having to sell their belongings... that's just heartbreaking 
. I'm definitely going to try to save more and cut back on unnecessary expenses, though 
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The fact that some people are having to go without food because they can't afford bills is just shocking.
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. It's about recognizing that financial stability is not just about having enough money but also about being free from fear and anxiety 
800/month. Ryan's story is heartbreaking too, having zero savings & even resorted 2 going without food 
. We need 2 find a way 2 support each other & work 2gthr 2 create more affordable housing options & stable jobs 4 all ppl 
. It's not just about the money, it's about having a safety net for emergencies. How r we supposed 2 plan 4 the future when we can't even cover our basic expenses? 