UK households face low financial resilience and high economic exposure

New analysis from Royal London indicates that financial resilience among UK households remains weak. The report places the nation in the ‘Economically Exposed’ category, with the average UK adult scoring only 33% on the Financial Resilience Barometer.

Research highlights that employment does not guarantee security; 35% of employees are classified as financially fragile, while 40% are considered economically exposed. Households in the fragile category hold average cash savings of just £1,136 and possess only £77 of monthly discretionary income after essential spending. Life events such as bereavement, divorce, or job loss have contributed to 42% of people falling into the fragile category over the last two years.

Further data from the Money and Pensions Service shows that nearly 11 million people in the UK have less than £100 in accessible savings. Additionally, a study by the Financial Conduct Authority (FCA) found that 34% of UK adults holding investment products also carried high-cost debt, with interest rates on debt significantly outstripping investment returns.