Cost of living: 11 million Brits don’t have savings of at least £1000
How much do you have saved for a rainy day? The advice from financial experts is to keep at least three months salary saved in case of an emergency but now it's been revealed millions of working age people have less than a thousand pounds set aside. A think-tank says it's down to what they call a triple savings challenge.
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00:00 The Resolution Foundation has issued a warning as part of a report that found that fewer
00:07 than half of working age households have savings worth three months of income, with 11 million
00:12 Britons having less than £1,000 set aside for emergencies.
00:16 They say that due to the cost of living crisis, households are now facing a triple savings
00:19 challenge of insufficient savings, an inability to cope financially with major life events
00:24 such as family breakdown and inadequate retirement incomes.
00:28 The report estimated a total deficit in savings for the UK of a whopping £74 billion.
00:35 Molly Broome, an economist at the Resolution Foundation, said "We can address all three
00:39 challenges by building on the success of pensions auto-enrolment to opt more people into both
00:44 easy access and long-term saving.
00:46 We should also offer people more flexibility over their pension pots, as other countries
00:50 do, in order to help them with difficult circumstances.
00:53 These reforms will improve families' financial resilience during their working lives and
00:56 into retirement too."
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