Average emergency savings UK

Emergency savings are there to act as a financial safety net, yet for millions of people in the UK, that safety net is thin or non-existent. With the cost of living still elevated and interest rates making borrowing more expensive, even a short-term financial shock can have serious consequences for household finances. So what are the average emergency savings for people in the UK?

A large share of UK adults have little or no cash set aside to deal with emergencies, the Financial Conduct Authority’s latest Financial Lives survey shows.

Many would struggle to cope with an unexpected expense or a sudden loss of income, and some would need to borrow almost immediately to stay afloat.

In this article, we look at the average level of emergency savings in the UK, how this varies by age and income, and how long households could realistically cope without earnings.

We also explain how much experts typically recommend saving, where to keep an emergency fund, and practical ways to build one, even on a low income.

Key takeaways

What is an emergency fund?

An emergency fund is money set aside to cover unexpected but essential costs, such as a sudden loss of income, urgent home or car repairs, or emergency travel. It is designed to prevent people from relying on credit cards, overdrafts or loans when something goes wrong.

Emergency savings matter even more during periods of high inflation. When prices for food, energy and housing are elevated, unexpected expenses have a bigger impact on household budgets, and borrowing to cover them becomes more expensive due to higher interest rates.

Emergency savings are not the same as other types of savings, because they are reserved strictly for unexpected, essential costs, rather than money set aside for planned spending, such as holidays, Christmas, home improvements or long-term goals.

What counts as an emergency expense?

Planned expenses, even if expensive, are not emergencies and should be saved for separately.

Average emergency savings in the UK

There is no single ‘average’ emergency fund figure that reflects most households, because savings are unevenly distributed. But experts suggest an emergency fund should cover three to six months of spending.

However, data from the Financial Conduct Authority’s Financial Lives 2024 survey, published in 2025, shows a significant proportion of UK adults have very limited cash savings, and many would struggle to cope with even a short disruption to income.

Cash savings are usually set aside for emergencies because they can be easily accessed, so we have used those figures to suggest how much people have saved for a rainy day.

About one in 10 people have no cash savings at all, and 21% have less than £1,000 to draw on for emergencies, according to the FCA’s research which questioned 17,950 adults.

At the opposite end of the spectrum, 8% of those questioned had £100,000 to £250,000, and 6% had £250,000+.

Looking at the median average, the nine in 10 people who did have cash savings held between £5,000 and £6,000. This is about the same as when the research was last carried out in 2022.

Those with investments (only 35% of people), held on average between £10,000 and £15,000. In contrast, investments saw a large increase in value, jumping from between £9,000 and £10,000 in 2022.

Emergency savings by income level

Income is one of the strongest predictors of emergency savings, with a stark divide between lower- and higher-income households when it comes to holding cash savings.

FCA data shows that around one-third of adults in households earning under £15,000 a year have no cash savings, compared with fewer than one in ten in households earning £50,000 or more.

High-income households are also far more likely to hold £5,000+ in savings, a level that remains rare among the lowest earners.

This gap feeds directly into financial resilience. The FCA classifies 24% of UK adults (13.1 million people) as having low financial resilience — a measure that includes low or no savings, high bills and heavy use of credit.

Lower-income households are therefore much more likely to need to borrow immediately to cover unexpected costs and cut back on essential spending, such as food or heating, when faced with a financial shock.

This gap has widened in recent years as inflation has disproportionately affected households with less financial headroom.

Emergency savings by age group

Age also plays a significant role in emergency savings levels.

About a quarter of adults aged 18–24 have no cash savings at all, but in those aged 65 and over, the share with no savings falls to well under one in 10.

Adults aged 55–64 and 65+ are the most likely to have £5,000 or more in cash savings.

This level of savings is uncommon among under-35s, where holdings are typically concentrated below £1,000.

This means younger people are far more likely to be entering adulthood without a financial safety net — often due to lower wages, high rental and housing costs, student loan repayments and early-career instability.

While older age groups are more likely to have savings, this is not universal, and gaps remain among renters and lower-income pensioners.

How many people in the UK have no emergency savings at all?

Despite the importance of emergency funds, FCA figures show that a significant minority of UK adults have nothing set aside.

Around one in ten UK adults have no cash savings whatsoever.

This lack of savings leaves millions of households extremely vulnerable - about 9% said they could not cover their living expenses for a week if they lost their main source of household income, slightly higher than the from 8% in 2022.

Another 42% had a limited savings buffer, admitting they could not cover their living expenses for more than three months if they lost their main source of household income.

This lack of financial resilience means even relatively small emergencies — such as a broken boiler or car repair — can quickly turn into long-term debt problems.

How much emergency savings should you ideally have?

Most financial guidance suggests aiming for three to six months of essential living costs in an emergency fund. This typically includes:

NimbleFins research into the average household budget in the UK found families spend about £2,873 a month on essentials such as utilities, food, closed and transport. The figure is higher if you rent or have a mortgage.

A typical household (of 2.3 people) with a mortgage spends £3,509 a month on bills, while private renters spend £3,360. The figure is lower for social renters or those who own their home outright.

That means a typical household with a mortgage would need an emergency fund of at least £10,527 to cover three months.

While this is a useful long-term goal, many households are far below this level, creating a clear gap between what’s recommended and what people actually have.

For those on lower incomes, even £500 to £1,000 can make a meaningful difference by reducing reliance on credit during emergencies.

How to build emergency savings on a low income

For many households, the biggest barrier to building emergency savings is a lack of headroom. FCA data shows that 8% of adults are usually or constantly overdrawn by the time they’re paid, leaving little room to put money aside. At the same time, 6.4% of adults rely on high-cost credit, and 9% say they couldn’t cover even one week of living expenses if their main source of income stopped.

These pressures make saving feel unrealistic, particularly for those on lower incomes or in insecure work.

While financial advice often focuses on long-term targets, the reality for many people is that even small, short-term savings can make a meaningful difference, helping to reduce reliance on overdrafts, credit cards or payday-style borrowing when something goes wrong.

Building an emergency fund on a low income can feel daunting, but small steps will help to build breathing space.

Where should you keep your emergency fund?

An emergency fund should be:

For most people, this means a cash savings account, such as an easy-access savings account.

In contrast, stocks or shares may feel more risky as as market fluctuations could reduce their value when you need the money quickly.

Read our Best Savings Accounts Guide for details the best rates for easy access accounts, cash ISAs and regular savers, updated weekly.

Summary

Emergency savings are a crucial part of financial security, yet many UK households have little or no safety net. FCA data shows that a large number of people would struggle to cope with even a short loss of income, a risk made worse by high inflation and rising living costs.

While financial experts recommend holding several months’ worth of expenses, building an emergency fund is a gradual process. Even modest savings can provide meaningful protection, reduce stress and prevent short-term shocks from becoming long-term financial problems.

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