31% of UK adults are not saving

UK adults are running the risk of falling off the financial cliff if they do not take a serious attitude to saving.

This is because the Scottish Widows' seventh annual savings and investment report has found that 31 per cent of Brits are making no effort to save any money for the future. This means these individuals could be left in dire straits if an unexpected expense crops up.

On top of this, 32 per cent have less than £1,000 set aside for a rainy day fund – people are typically told to have three months' pay in savings in case their circumstances change.

Nearly one-fifth of those questioned are worried about their job security in the coming year and these individuals could face real debt problems if they find themselves no longer in employment.

Some 25 per cent of parents have admitted to loaning their children a substantial amount of money in order to help them meet their daily living expenses, with the average amount standing at £15,000.

As a result of this, 24 per cent of mums and dads have cut back on their savings, while eight per cent have stopped saving completely.

Iain McGowan, head of savings and investments at Scottish Widows, said: "People clearly recognise the importance of saving something towards their future financial wellbeing, which is encouraging.

"The importance of building a safety net for themselves and their families is a priority, with 63 per cent of people reporting that they managed to save some money in the last 12 months. However, just a quarter of those people believed they were saving enough to meet their long-term needs."

Mr McGowan stated people need to make sure they are prioritising their outgoings so they can continue to meet the most important ones. Failure to do so could see them face real debt problems further down the line.

By James Francis