A new study has uncovered that families in the UK have a £74 billion shortfall in savings for retirement and emergencies.
This is when compared with a nation where every family has three months of provisions in place as a precaution.
The report issued by independent UK thinktank Resolution Foundation commented that British families were facing what they referred to as a “triple savings challenge”. It explained that they had inadequate “rainy-day” funds, insufficient retirement revenues and lacked the finances to cope with major life events.
The thinktank found that over 11 million UK citizens have savings of less than £1,000. In its report entitled “Precautionary Tales”, it examined how to help Britons build up greater financial resilience during the current the cost-of-living crisis in the UK.
It noted that while modest savings like £1,000 can assist with unexpected costs like car repair work or a replacement fridge, larger savings were necessary to cope with unexpected life events like a family breakdown or sudden unemployment.
Britons with concerns about the provisions they have in place for tougher times and the future often talk to expert financial planning services in Chester, Manchester and other cities. From setting up protective policies to cover unexpected events, to long-term investments that can bolster retirement income, financial planners can help savers get better prepared.
Resolution Foundation called for auto-enrolment contributions to be increased gradually from 8 per cent to 12 per cent to help compensate for the current shortfall, and suggested that employee and employer contributions were matched at 6 per cent each.
