Andrew, a writer from Essex in his mid-30s, describes his financial situation as precarious despite being considered middle class. He has approximately £4,000 in savings and the same amount in stocks and shares, but faces monthly expenses of at least £2,800, which include a mortgage and childcare fees. He has managed to save £30,000 in his workplace pension, but feels unable to continue saving as he and his family now live paycheck to paycheck.
Andrew is among numerous individuals from the UK who shared insights on their savings and financial conditions, largely influenced by the rising cost of living. Many reported a shift in their ability to save, with some ceasing contributions to pensions and funds due to increased financial pressure. Respondents generally fell into two categories: those who had successfully saved over time and those struggling to save due to high living costs such as rent, childcare, or student loans.
The personal savings rate in the UK saw a peak in 2020, but changing economic conditions have forced many to access their savings to manage rising expenses. A significant increase in unauthorized withdrawals from Lifetime ISAs has been noted, reflecting the financial strain many are experiencing.
In 2025, data reveals that the average savings across the UK stands at £16,067, yet a notable portion of the population has minimal savings, with 39% having £1,000 or less.
Ryan, a 30-year-old bank worker, exemplifies this struggle; he reported having £0 in savings and expressed concerns about his financial security. Other respondents include Carrie, a customer service worker from Manchester, who has a pension pot of £70,000 but lacks emergency savings. She relies solely on her salary, raising worries about their financial future amid rising rents.
Individuals like Kira from London have also reported financial challenges, including high living costs preventing them from saving. Jon, a firefighter, has an emergency fund of £2,000 but feels precariously close to financial instability.
Overall, many respondents emphasized the pressure from elevated living costs, leading to a significant variation in savings among different demographics and raising questions about future financial security.
Source: https://www.theguardian.com/business/2025/nov/15/how-cost-of-living-affect-britons-savings-pensions-economy