One in five have less than £1,000 in savings

New data from AJ Bell has found that one-in-five (19%) people have less than £1,000 saved in an emergency cash pot.

The data showed that younger people tend to have less saved than older people – 21% of over 55s have £20,000 or more saved in an emergency cash pot, while 37% of 18 to 34 year olds have less than £2,000 in emergency savings.

The research also showed that a quarter (24%) of women have £1,000 or less saved, compared with 15% of men. The average saved is £8,245 but the median amount is almost half of that at £4,500, suggesting a small group with large savings and a majority with much less.

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

Laura Suter, Director of Personal Finance at AJ Bell, said “The end of the year is a time where we think more about spending than saving, but lots of people are leaving themselves financially exposed by not having enough in their cash savings. New research from AJ Bell paints a pretty concerning picture of the nation’s financial resilience, with one-in-five having less than a grand in their emergency cash pot.

“Perhaps more stark is the disparity between age groups. Younger people tend to have less money saved in an emergency savings pot than older people, with almost two-fifths saying they have less than £2,000 saved. On the other hand, 21% of over 55s are sat on an emergency cash pot worth £20,000 or more. This makes some sense when you consider that older people will generally have slowly built up a substantial cash buffer over the years, but it doesn’t address the problem of many young people leaving themselves exposed if they lose a job or face another financial emergency.

“Women also tend to have less saved than men, with no signs of the gender savings gap slowing – in fact, it’s risen. A quarter of women have less than £1,000 saved in their emergency cash pot, compared with 15% of men. This is by no means a new trend – research by AJ Bell Money Matters in 2023 revealed that men typically have 16% more saved in an emergency cash pot than women. In the latest figures, men on average have £1,746 more saved than women, representing a larger gender savings gap of 19% in 2025.

“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.”