One in ten UK adults have no cash savings to fall back on, and more than a fifth have less than £1,000 set aside for emergencies, according to new findings from the FCA.
The stark figures come as the regulator highlights the financial fragility of many households, with 25% of respondents considered to have low financial resilience. These individuals are either falling behind on bills, struggling with repayments, or lack the savings to weather financial shocks.
The FCA’s report also found signs of progress, especially in banking access and digital inclusion. The number of people unable to access basic banking services has dropped, and more are now using mobile and online banking. Just 1.2 million adults (2%) are currently digitally excluded, a steep fall from 6.9 million (14%) in 2017.
Encouragingly, those who seek debt advice are seeing benefits. Of the 1.7 million adults who used debt management or advice services in the past year, 61% reported that their debt became more manageable as a result. Lenders, the FCA notes, have a range of tools available to assist those facing repayment challenges.
Despite these gains, financial habits among wealthier individuals also raised concerns. The survey showed that 61% of people with more than £10,000 in investible assets held the majority of their money in cash rather than in investment products—potentially limiting long-term returns. The regulator is encouraging more people to consider mainstream investments to support their future financial wellbeing.
Retirement preparedness is also an issue. A third of adults with a defined contribution pension have less than £10,000 saved, which could leave many vulnerable in later life.
The regulator is responding by pushing a broader strategy to improve access to financial guidance and affordable support. This includes new regulatory measures designed to help consumers make informed decisions about pensions and investing without needing costly personalised advice. Initiatives such as the InvestSmart campaign aim to build consumer confidence, while the FCA is also collaborating with the government on a national financial inclusion plan.
The strategy also includes strengthening rules for workplace pensions and insurance, ensuring customers receive fair value.
FCA executive director of consumers and competition Sarah Pritchard said, “Our data shows that finances are stretched for many – with some unable to save for a rainy day. And we know that some do not have the confidence to invest. But there are improvements – more people with current accounts and less digital exclusion. Our strategy will build on this to help people better navigate their financial lives.”
The FCA recently announced it will not move forward, for now, with plans to extend its Sustainability Disclosure Requirements (SDR) and sustainable investment labelling rules to portfolio managers, citing industry feedback that called for more time and clarity.
According to ESG Today, this proposal, introduced in April 2024, aimed to expand upon the SDR regime launched for asset managers in November 2023. The initial rules included anti-greenwashing guidance, marketing and naming rules for funds with sustainability features, and a product labelling framework.
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