The Financial Conduct Authority (FCA) has published new Financial Lives survey findings showing stretched household finances and limited savings buffers across the UK. One in ten people have no cash savings and a further 21% have less than GBP 1,000 available for emergencies, while one in four are assessed as having low financial resilience because they have missed payments, are struggling to keep up with commitments, or lack savings to cope with difficulties. The FCA’s data also points to the benefits of seeking support: of the 1.7 million people who used debt advice or debt management services in the previous 12 months, 61% said their debts became more manageable. Access to basic banking has improved, with unbanked adults down from 1.1 million in 2022 to 0.9 million in 2024 and digital exclusion falling to 1.2 million adults (2%) from 6.9 million (14%) in 2017; 7% of day-to-day account holders did not bank online or via mobile app, compared with 22% in 2017. The survey also highlights long-term savings and investment challenges, including 61% of people with more than GBP 10,000 in investible assets holding at least three-quarters in cash, and one-third (33%) of defined contribution pension holders having less than GBP 10,000 saved. In response, the FCA is urging consumers to contact lenders if they are struggling with repayments and to seek help with pensions and investment decisions. It also links the findings to its strategy, including planned new rules for a new form of support to help consumers navigate pensions and investing without personalised advice, its InvestSmart campaign, support for a national plan for financial inclusion, continued implementation of the Consumer Duty, work on value for money in workplace pensions, and scrutiny of insurance pricing and value in areas such as pure protection and premium finance.
Financial Conduct Authority 2025-05-13
Financial Conduct Authority finds one in four UK adults have low financial resilience and outlines a consumer support agenda
The FCA's Financial Lives survey shows widespread financial vulnerability in the UK, with 25% having low financial resilience and 10% lacking savings. While banking access and digital inclusion improved, challenges remain in long-term savings. The FCA is promoting consumer engagement with lenders and financial advice, aligning its strategy with new support rules, the InvestSmart campaign, and financial inclusion initiatives.