**One in Ten UK Adults Have No Savings, Financial Watchdog Warns**
A new report from the Financial Conduct Authority (FCA) has spotlighted the precarious situation facing millions across the UK, revealing that around one in ten adults have no savings set aside whatsoever. The findings, published as part of the FCA’s extensive Financial Lives survey, underscore how a significant portion of the population remain highly susceptible to sudden financial pressures, including cost-of-living increases and unexpected bills.
The survey, which canvassed the financial habits of nearly 18,000 adults, offers a comprehensive snapshot of household finances across the country. According to the FCA’s data, some 13 million adults – approximately a quarter of the UK’s population – walk a narrow financial tightrope with little or no buffer in place should economic conditions deteriorate further. Many have scant savings, are struggling with debt, or have missed recent bill payments, signalling a widespread lack of what experts call “financial resilience”.
Despite rampant inflation and a sharp increase in household expenses seen over the last two years, the proportion struggling to keep their heads above water has remained stubbornly persistent, with little improvement noted since the previous edition of the survey in 2022. A further 21% of respondents said they had less than £1,000 in savings, deepening concerns about the nation’s ability to weather economic shocks.
Among other areas of concern identified by the regulator, 2.8 million individuals were found to be entrenched in persistent credit card debt. Anxiety and mental health issues related to financial stress appear to be endemic, with nearly 12 million people reporting feelings of being overwhelmed or stressed when dealing with their money. Strikingly, two in five adults with either loans or credit cards attributed direct anxiety and stress to their financial obligations.
Retirement security also remains a looming worry for many, with 3.8 million retired adults fearful their resources could run dry. Meanwhile, around 10 million people face difficulties accessing in-person banking services, a situation made more acute as high street branches continue to disappear across the UK.
The FCA’s report also noted a notable rise in the use of “buy now, pay later” (BNPL) services; nearly 11 million adults in the last year have turned to these unregulated forms of deferred credit. Usage is particularly pronounced among single parents and women aged 25 to 34, raising questions about the long-term sustainability and potential risks of such borrowing.
Consumers with outstanding debts typically owe a median average of £6,300, but among 18 to 34-year-olds the figure balloons to £12,500 (though this drops to £1,300 if student loans are discounted). Financial distress and mental health challenges are frequently conjoined, according to debt advice organisations, who regularly encounter clients whose emotional wellbeing suffers under the weight of unpaid bills and mounting obligations.
Matt Dronfield, who heads the Debt Free Advice coalition, highlights that common sources of debt include rent or mortgage shortfalls, unpaid council tax, and overdue utility bills. He noted that many seeking help are already working multiple jobs but still falling short of meeting essential household costs. In his words, “If you’re not facing money worries yourself, it’s likely that someone close to you is.” He urges those affected not to keep their struggles to themselves, saying many will discuss their money problems with pets before confiding in loved ones or seeking professional support.
Dronfield advocates a proactive approach, encouraging individuals lacking savings to prioritise “paying themselves first”, by directing a small, regular amount into savings. He suggests this habit, no matter how modest, can help build financial resilience and better equip people to handle future emergencies. According to the FCA, the median amount saved by Brits stands between £5,000 and £6,000 – figures that may seem unattainable for those currently struggling, but serve as an important long-term goal.
While the FCA acknowledges that stretched budgets remain a reality for many across the UK, it also emphasises that free debt advice and guidance is available, and encourages anyone feeling overwhelmed by financial difficulties to seek help before problems escalate. In an era marked by economic uncertainty, the capacity to build and maintain robust savings is being increasingly recognised as crucial for both financial and personal wellbeing.
The report findings coincide with ongoing debates around consumer protection, the expansion of debt advice services, and calls for increased financial education. They also highlight the need for continued efforts by both government and industry to support those most at risk.
As inflation, living costs, and unsecured debt continue to impact millions, the FCA warns that inaction can lead to greater hardship in the long term. The key message remains that support is available and that taking positive steps, however small, can make a difference to both financial health and peace of mind.