One-in-five Brits have less than £1,000 stashed in emergency cash pots

• One-in-five (19%) Brits have less than £1,000 saved in an emergency cash pot, according to research by AJ Bell*
• Younger people tend to have less saved than older people – 21% of over 55s have £20,000 or more saved in an emergency cash pot, while 37% of 18 to 34 year olds have less than £2,000 in emergency savings
• A quarter (24%) of women have £1,000 or less saved, compared with 15% of men
• Average saved is £8,245 but the median amount is almost half of that at £4,500, suggesting a small group with large savings and a majority with much less
• The Financial Conduct Authority (FCA) recommends that savers have at least three months’ of take-home pay saved for emergencies
• Six tips to help get your finances in order

Laura Suter, director of personal finance at AJ Bell, comments:

“The end of the year is a time where we think more about spending than saving, but lots of people are leaving themselves financially exposed by not having enough in their cash savings. New research from AJ Bell paints a pretty concerning picture of the nation’s financial resilience, with one-in-five having less than a grand in their emergency cash pot.

“Perhaps more stark is the disparity between age groups. Younger people tend to have less money saved in an emergency savings pot than older people, with almost two-fifths saying they have less than £2,000 saved. On the other hand, 21% of over 55s are sat on an emergency cash pot worth £20,000 or more. This makes some sense when you consider that older people will generally have slowly built up a substantial cash buffer over the years, but it doesn’t address the problem of many young people leaving themselves exposed if they lose a job or face another financial emergency.

“Women also tend to have less saved than men, with no signs of the gender savings gap slowing – in fact, it’s risen. A quarter of women have less than £1,000 saved in their emergency cash pot, compared with 15% of men. This is by no means a new trend – research by AJ Bell Money Matters in 2023 revealed that men typically have 16% more saved in an emergency cash pot than women. In the latest figures, men on average have £1,746 more saved than women, representing a larger gender savings gap of 19% in 2025.

“Looking at the average amounts saved, there’s evidence that a small number of people have large amounts saved. The average amount saved of £8,245 may appear relatively healthy, but when you factor in that the median is almost half of that at £4,500, it becomes clear that those with larger amounts saved, by a sizable margin, are distorting the overall picture of the nation’s financial resilience.

“One golden rule is to have saved at least the equivalent of three months essential expenses to sustain you through any financial shocks. If that seems too ambitious, the most important thing people can do is start saving as early as possible, even if it’s just a small amount of money. Once you’ve built up that emergency pot it’s then worth considering investing your money for the long term. Over time that money has the potential to grow to a more substantial pot and provide an even more stable financial cushion.”

*Source: AJ Bell/Opinium. Based on a nationally representative online survey of 4,000 UK adults carried out between 7 and 14 October 2025.

Six tips to help get your finances in order

“There are several things you can do to help get your finances in order. We’ve highlighted six tips below:

1. Pay down your debt. The FCA’s latest Financial Lives study showed a rise in buy now, pay later usage, as well as other high-cost credit, like credit cards and personal loans. Anyone who has debt should look at how much interest they’re paying and work out a plan to pay it off. If you can, move it to a cheaper form of debt, and then work out a way to overpay (even by small amounts) to start chipping away at the debt.
2. Shop around. One way to save money that could then be funnelled into savings is to cut your outgoings. A good way to do this is to look at any contracts you have and shop around to see if you can get it cheaper. Look at things like mobile phone or TV contracts, or any insurance you buy. The savings from these can be significant, and can then immediately be moved into savings.
3. Work out a budget. Lots of people find they overspend each month, slipping into their overdraft or putting some spending on credit cards. But it’s a good idea to work out why, and where your money is actually being spent. A scan through your bank account will show where your money is going – and potential areas you could cut back on. By sticking to a budget and identifying any financial weaknesses, you could free up money to save.
4. Pay more into your workplace pension. While lots of people are neglecting their cash savings, they are also overlooking the power of their pension. At least 8% of your salary must go into a workplace scheme under auto-enrolment rules; half from you, 3% of your salary from your employer, and the equivalent of 1% from the government in the form of tax relief. This just a minimum and employers often pay more if you also increase your contribution. Check to see if your employer offers more generous contribution rates if you also chip in more. This is effectively free money to give your pension a boost. These small additions now can really add up when you come to retirement. Self-employed individuals are excluded from auto-enrolment, but they can still use a self-invested personal pension (SIPP) or a Lifetime ISA to save for retirement and enjoy top-ups from the government in the form of tax relief and bonuses, respectively.
5. Consolidate pensions. If you’ve had multiple jobs during your working life, it’s easy to build up a range of pensions with different employers. Combining these into a single pot makes sense from a time management perspective and you might also be able to save on costs. Having a single pot means you can have a clear focus on what you’ve got and how you’re going to hit your goals.
6. Don’t hoard cash that could be invested. While one-in-five adults having less than £1,000 in emergency cash savings is worrying, it’s also worth considering those individuals who have too much held in cash. Having some money for emergencies is sensible financial planning, yet hoarding cash that could be generating better returns via investing isn’t a great way to put your hard-earned money to work. A lot of people have time on their side to take higher risks with their money and history suggests that investing in shares can generate a higher return than cash over time.