Two in five (40%) UK adults have no savings in the bank, a new study by Darlington Building Society has indicated.

The society’s findings also suggested that just 13% of people have at least one month’s salary saved.

Darlington Building Society asked over 1,200 UK adults how much they currently have in savings, excluding pensions and non-liquid assets.

According to the research, 18 to 25-year-olds had the least amount of money saved, with 57% admitting they had no savings at all. Of these, 15% had less than one month’s salary tucked away in a savings account.

By comparison, 34% of those aged between 55 and 64 had no savings in the bank, while almost 23% had more than their annual salary saved. The data revealed that 31% of the respondents over the age of 65 had more than their average salary, pre-retirement, saved for a rainy day.

“It’s not wholly surprising to learn that the older generation have healthier savings balances, with more time to build up their savings, and some arguably favourable economic circumstances in years gone by,” head of products at Darlington Building Society, Tom Crossley, said.

“It’s understandable that the younger generation are finding it difficult to save money, with those long-term goals feeling out of reach in the current climate. However, not having any savings at all poses a risk. Not only are you not prepared for a financial emergency, which could be anything from a broken boiler to losing your job, but it has a knock-on effect on your mental wellbeing through worrying about what may be around the corner.

“Following the announcement of an increase in the National Minimum Wage, we hope young people will begin to feel like they can start their own savings pot with that little bit extra in their pocket.”

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