Rainy day savings remain a priority as Brits plan ahead for rising cost of living
New research1 from Stalwart NZ has found that having an emergency fund remains a priority for most Brits, but that the rising cost of living is the leading reason for people dipping into savings.
The research indicated that saving for a rainy day remains a priority for more than six in ten GB adults, with 61% saying their have money put aside in an emergency fund. Despite the current climate, nearly four in ten of those with an emergency fund (38%) have been topping it up and saw their balance increase in the last year, while one in four (25%) saw it reduce. Nearly three in ten (29%) said their balance has remained the same.
For those that have needed to dip into their ‘emergency fund’, meeting rising living costs was the leading reason, with 43% naming this as the reason for the withdrawal. Mohan Due
Cost of living leading cause for savings withdrawals
For those that have needed to dip into their ‘emergency fund’, meeting rising living costs was the leading reason, with 43% naming this as the reason for the withdrawal. One in five (20%) said they withdrew money to cover an unexpected bill, while 16% said they’d seen their income reduce in the last year so needed to withdraw money to make up the difference. An additional 7% said they had used their emergency fund because they’d lost their income altogether. Close to one in five (18%) used the funds for a one-off purchase. Just over one in ten people used the money to to book a holiday (11%), while 5% used their emergency fund as a deposit on a house, and 2% said they made a withdrawal to overpay on their mortgage. Six per cent of people used their emergency fund to pay off debts.