UK facing “financial wellbeing crisis” as Savings Week begins

The importance of a savings pot is highlighted this UK Savings Week, as research shows the amount we have in savings can affect our health and overall wellbeing.

The UK is facing a “financial wellbeing crisis” as many adults have little to no money in savings, according to new research by the Building Societies Association (BSA).

More than one quarter (27%) of UK adults have less than £1,000 in savings, while 12% have no money in savings at all.

Having some form of savings buffer can put you in a stronger financial position as it means you have money put aside to cover any emergency costs or increases in bills, for example.

However, one in five adults (21%) said they couldn’t cover a £300 unexpected expense, while one in three (30%) wouldn’t be able to live off their savings for more than one month if they had no income.

This survey was conducted as part of UK Savings Week 2025 which runs from 22 to 28 September. The campaign aims to encourage people with no money in savings to build up an emergency buffer, as well as prompting those with savings to get their money working harder for them.

Ideally, it’s recommended to have between three- and six-months’ worth of your essential outgoings saved in an emergency fund, but even a small sum is better than nothing.

“We know that those who are able to save, even small amounts, have reduced anxiety and are more able to deal with life’s shocks. And for people fortunate to have more substantial savings pots, having savings to draw upon can open up new opportunities,” Andrew Gall, Head of Savings and Economics at the Building Societies Association, commented.

“UK Savings Week encourages everyone to build better savings habits, whatever their starting point. Whether it’s £1 or £100, every pound put into savings helps to build peace of mind, long-term resilience, and better mental wellbeing,” he continued.

Starting your savings journey

Trying to save up thousands in an emergency fund can seem overwhelming for those with no money in savings, but starting small can help you get into the habit of saving and allow you to gradually build up a savings pot.

There are regular savings accounts that prompt you to make a deposit each month, helping you to consistently put aside some money into savings. Some of these accounts only require you to deposit a minimum of £1 each month, which can make saving a less daunting task for those just starting out.

However, the more you can manage to save the better. It’s a good idea to take some time to assess your budget and see how much you could afford to save each month, as well as seeing if you could cut back on your spending to boost the amount you can put into savings. Learn more in our budgeting guide.

Switch accounts to make your savings work harder

Even those with money in savings shouldn’t be complacent, as they may be able to get a better return on their money by moving to an account with a higher interest rate.

“Some might assume that switching savings accounts isn’t worth the effort, but that is just not true. Not everyone will be rewarded with an attractive savings rate for their loyalty, which is why it’s important to check and switch accounts regularly to fight against the eroding power of inflation,” Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, explained.

Moreover, it’s worth considering whether you could put more of your money into savings, as four in five (81%) adults surveyed said they could save an extra £10 a month if they needed or wanted to. While this may not seem like much, over time this extra amount could have a significant difference on your overall savings pot and financial resilience.

Discover the latest savings rates

To see if you could get a better return on your money, visit our savings charts. They are updated throughout the day to show the best easy access and fixed savings rates currently available.

Or, if you want to learn more about savings, you can find more information in our savings guides.