Climbing costs will wreck many saving pots this year – as bills gobble up reserves for almost a third of households. Some 30 percent will need to spend more than they earn on their usual outgoings in 2023.
Hargreaves Lansdown’s Sarah Coles warned of a “savage” year to come – as “rampant inflation” forces those with cash for a rainy day to use it all.
She said: “Despite the fact many were able to build savings during the pandemic, by the end of the year, anyone earning less than average will be less financially secure than before Covid hit.”
The firm’s data shows 35 percent have had to adapt their lifestyles to stay afloat already.
Overall, 65 percent have the minimum recommended emergency savings to cover three months, but this falls to 59 per cent among average earners and 30 per cent among the bottom fifth of earners.
Even for average earners, the data show two-fifths of people do not have enough savings.
