New research from The Exeter shows that millions of UK adults are at risk of financial difficulty if their income were to stop, with 47% holding less than £5,000 in emergency savings.
The survey of 2,000 adults found that one in ten have less than £500 set aside for essential costs, while one in seven have no savings at all.
Financial strain affects all age groups, but the findings indicate that those aged 45–54 may be most exposed.
More than half in this cohort have under £2,500 saved and 21% report having no financial buffer, the highest of any generation.
The data also challenges assumptions about younger adults’ preparedness. Among those with savings, consumers aged 25–34 reported mean savings of £14,123, almost double the £7,961 held by 45–54-year-olds.
The research highlights a reliance on a patchwork of income sources should individuals be unable to work.
Nearly a third of adults say they would depend on their own savings, despite many having limited reserves.
Others would rely on company sick pay, a partner’s income or state benefits, while 8% say they would turn to friends or family.
Younger adults aged 16–24 are the most likely to seek family support, whereas 45–54-year-olds are more likely to rely on a partner’s income.
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.”
