The cost-of-living crisis is believed to have helped cause a phenomenon called ‘doomsday spending’ where people are focusing on enjoying the money they do have in the moment, rather than saving it for a future that feels uncertain
New research has found 40% of Britons don’t have any savings.
The survey, by Darlington Building Society, said this figure rises to 57% for those aged 18 to 24, while more than a third of 55 to 64-year-olds have nothing tucked away for a rainy day.
Researchers found just 13% of people had at least one month’s salary saved to cover unexpected bills. And only around a third of over-65s have more than their average pre-retirement salary tucked away.
Vicky Reynal, financial psychotherapist and author of Money On Your Mind: The Psychology Behind Your Financial Habits, said: “The UK’s cost-of-living crisis has left a significant proportion of the population struggling to save or even forced to abandon savings altogether, as rising costs consume what little surplus might have once gone into savings accounts.
“For younger generations, especially, the long-term financial milestones, like buying a house or saving for a wedding, can seem out of reach. This has led to a phenomenon [that] some call ‘doomsday spending’, where young people adopt a ‘spend now, save never’ attitude, choosing to focus on enjoying their money in the moment rather than saving it for a future that feels uncertain.”
Tom Crossley, head of products at Darlington Building Society, added: “It’s not wholly surprising to learn that the older generation have healthier savings balances with more time to build up their savings and some arguably favourable economic circumstances in years gone by.”
