The Yorkshire Building Society has released its latest ‘The Nation’s Nest Egg’ report claims that the UK population has a savings shortfall of £371bn. The survey of 2,000 UK adults from a wide range of society conducted in partnership the Centre for Economics and Business Research, found that the average adult felt secure with an emergency savings ‘nest egg’ of £17,465.
On the secure savings target of £17,465, the average savings held per adult in the UK was £10,245, meaning an average shortfall of £7,220. Averaging that across the adult population, rather than just 2,000 adult, this equates to £371bn. The emergency savings ‘nest egg’ focusses on our ability to deal with financial shocks such as job losses, relationship breakdown and others e.g. furlough, covid-19 and lockdown.
Interestingly, throughout the pandemic, adults had been able to save up additional reserves of a staggering £190bn to being the emergency savings gap down to £371bn. Many people have been able to save through lockdown due to less travel expenses, not going out shopping or socialising, no holidays and ‘ mend and make do’.
Across the regions, the North of England was still the least financially resilient with just 40% having enough savings. London improved with 48%, Scotland at 56% and the East of England, topped sustainability savings with 61% in a secure position.
Whilst covid-19 and lockdown has been an extraordinary period in all of our lives, we believe it has also been an extraordinary learning curve for us all. Many have learned to economize, to live within means and the need to have emergency savings. Many have also learned that stock market crashes, whilst a hit on our pensions and savings, do recover quite quickly. Many of us have also learned that work and life is a balance and where we live and the space we have is important. We do hope that we have all learned that health, family and friends are more important than most things. If you need help with a financial, savings or retirement plan, you are in the right place: