Around one in five (19%) adults have less than £1,000 in emergency savings, AJ Bell research has revealed.

The investment platform’s latest findings showed that the average saver in the UK has £8,245 in emergency savings, but the median amount is almost half of that at £4,500. It stated that this suggests there is a small group with large savings, with the majority saving more less.

AJ Bell revealed that younger people tend to have less saved than older people, with 21% of over-55s having £20,000 or more in an emergency savings pot, while 37% of 18 to 34-year-olds have less than £2,000.

The Financial Conduct Authority recommends that savers have at least three months’ of take-home pay saved for emergencies.

AJ Bell said that its research “paints a pretty concerning picture” of the nation’s financial resilience.

Director of personal finance at AJ Bell, Laura Suter, concluded: “Looking at the average amounts saved, there’s evidence that a small number of people have large amounts saved. The average amount saved of £8,245 may appear relatively healthy, but when you factor in that the median is almost half of that at £4,500, it becomes clear that those with larger amounts saved, by a sizable margin, are distorting the overall picture of the nation’s financial resilience.

"One golden rule is to have saved at least the equivalent of three months essential expenses to sustain you through any financial shocks. If that seems too ambitious, the most important thing people can do is start saving as early as possible, even if it’s just a small amount of money.

"Once you’ve built up that emergency pot it’s then worth considering investing your money for the long term. Over time that money has the potential to grow to a more substantial pot and provide an even more stable financial cushion."

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