LONDON, UNITED KINGDOM — (Marketwire) — 01/09/12 — New research from direct bank first direct reveals that 28% of households have less than GBP 250 in accessible .
The survey of over 1000 UK households reveals that more than a fifth (21%) have no savings at all to fall back on and 7% have savings less than GBP 250 set aside as a financial safety net. This is the equivalent of just three days average monthly household take home pay(ii), and with average monthly household outgoings currently GBP 1,536, these savings would last just five days(iii).
Those aged between 25 and 34 are the least prepared for a financial emergency; 39% have less than GBP 250 in savings, with 30% saying they have nothing set aside at all. Women are far less prepared than men; 24% admit they have no savings and 8% have less than GBP 250 set aside compared to 16% and 6% of men respectively. Across the UK, people in the North East are least likely to have any savings set aside at all with a third (33%) admitting they have no financial safety net.
Thirty-two per cent of people admit they would be unable to cover their rent or mortgage at all if they were to unexpectedly lose their main source of income. Worryingly, 11% of people would use a personal loan or credit card and a further 11% their overdraft to help pay for essential outgoings in the event of a redundancy.
How Brits would cover monthly outgoings if made redundant
Bruno Genovese, Head of Savings at commented:
“These findings demonstrate a worrying lack of financial preparation among the British public. With the current climate of uncertainty, it is of utmost importance that families are setting aside a realistic sum of money to be used in emergencies. As a general rule it is advisable to have 3 month-s salary set aside in accessible savings for a rainy day.
“By putting away small amounts each month Britons can help themselves build up an emergency savings pot as provision for any eventuality without having to rely on a solution that will get them further into debt.”
first direct-s tips for setting up an emergency savings fund:
Notes to Editors
(i) Based on 28% of households surveyed saying they had less than GBP 250 in savings. All figures are based on number of UK households being 21,407,000 (DCLG)
(ii) Average monthly take home pay of those surveyed is GBP 2,427.60 – this is GBP 79.81 per day
(iii) Average monthly outgoings for those surveyed is GBP 1,535.80 – this is GBP 50.49 per day
Opinion Matters survey carried out on behalf of HSBC of 1,069 UK adults in November 2011.
Regional and demographic statistics available on request.
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HSBC Bank plc: HSBC serves 16.1 million customers in the UK and employs approximately 52,000 people. In the UK, HSBC offers a complete range of personal, premier and private banking services including and . It also provides commercial banking for small to medium businesses and corporate and institutional banking services. HSBC Bank plc is a wholly owned subsidiary of HSBC Holdings plc.
The HSBC Group: HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 7,500 offices in 87 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,691bn at 30 June 2011, HSBC is one of the world-s largest banking and financial services organisations.
Contacts:
first direct
Amanda Brown
0113 276 6700
first direct
Rebecca Hirst
0113 276 6899