Exclusive report reveals financial insecurity of working families

Working families are relying on savings to cope with the rising cost of living – and shrinking their safety net.

With living costs spiralling, many households are spending their savings. But, as our latest Deadline to Breadline report has found, many households still don’t have enough.

Around 60% of households have less than £5,000 saved, while 16% have no savings at all. In fact, we found that at the current rate of saving, it would take households on average three years to meet the £12,100 families say they need to feel financially secure.

Key findings reveal:

  • The average working household has £2,431 in savings
  • Nearly 2 million households have no money left at the end of the month – an increase of 330,000 since 2020
  • Around two in three prefer to save for an unforeseen event rather than insure
  • 8 in 10 are concerned about at least one issue affecting ability to work

Households underestimate the ability to handle illness or injury but overestimate the support from savings, their employer and the state. Based on current behaviour, it would take households today three years to save enough to feel secure, and 10 years to save their annual gross income.

Financial and emotional impacts

The Deadline to Breadline report hasn’t just revealed monetary worries for households, but the emotional effects too. For example, many say they’re worried about their increasing age and the likelihood of long-term illnesses, the impact of finances on their mental health, or who they could rely on should the worst happen.

Our report is there to help you talk to your clients against this complex backdrop of the cost-of-living crisis.

Download the Deadline to Breadline infographic for more information on our key findings.