According to a survey of 2,000 adults by Finder, over a third of Brits are eating into their savings during the COVID-19 pandemic.
Since the coronavirus lockdown began on 23rd March, 36% of UK adults have supported themselves with savings.
On average, these people have used £1,420 of savings over the first seven weeks, which is equivalent to a fifth (21%) of the UK’s average savings pot.
But perhaps more concerning is the fact that 2 in 5 Brits (41%) don’t have enough money to be employed for a full month.
A closer look at savings in the UK
Finder’s research has revealed that the majority of Brits do have some savings – 4 in 5 (78%) have something put away for a rainy day. The average amount saved per person is £6,756.81.
A small percentage of people (6.5%) don’t even know if they have any savings, while 9% have no savings at all.
In terms of how long a person’s savings could last, finance experts usually recommend having three months worth of living expenses to fall back on. For the average Brit, this would be £4,701.
Demographic differences in savings use
Differences in savings use during the coronavirus pandemic often comes down to gender, region and age.
Not only have more men (37%) taken money from their savings during the lockdown compared to women (34%), they’ve also used more than twice as much money too. On average, men have used £1,941.47, while women have only used £898.38.
This could be due to the fact that women have less savings in general – £6,086.69, compared to £7,450.34 for the average man.
As for regional differences, Londoners have had to dive into their savings the most, with 45% doing so. They’ve also had to spend the most of their savings at £2,518.99 each on average. Even though Londoners have the biggest savings accounts, the high cost of living in the capital could be a reason for dipping into nest egg funds.
The residents who were lucky enough to dig into their savings the least live in Wales. Only 28% of people needed their savings to help support them, spending an average of £291.52 each.
It will probably come as no surprise that Baby Boomers have the most saved with an average of £9,758.54 per person. The Silent Generation have the second-highest savings and have dipped into their savings the least, with only 16% of people taking an average of £105.64 from an average savings pot of £9,497.96 per person.
However, it is a different story for Gen Z and Millenials. Since lockdown started, Millennials have spent the most out of their own savings at £1,847 on average. Gen Z on the other hand has the highest percentage of people using their savings recently, with 58.10% needing to withdraw.