New research from the FCA has found that one in four people in the UK have low financial resilience, meaning that they have missed payments, are struggling to keep up with commitments, or don’t have savings to help them through difficulties.
The regulator has found that one in ten people have no cash savings at all, and another 21% have less than £1,000 to draw on in an emergency.
Even those who are better off could take steps to improve their long-term financial health. 61% of people with more than £10,000 in investible assets held at least three-quarters of these assets in cash, rather than investments. The FCA says it wants to see more people holding mainstream investments to improve long-term returns.
Looking towards retirement, the FCA’s survey found that one-third (33%) of adults with a defined contribution pension have less than £10,000 saved. Only a third (33%) of DC pension holders have thought a lot about how they are going to manage in retirement, and almost 4 in 10 (38%) don’t know how much they or their employer are contributing.
More positively, the research found that when consumers seek support it makes financial pressures more manageable. Of the 1.7 million people who had used a debt advice or debt management service in the previous 12 months, 61% said their debts were more manageable as a result.
There has also been progress on access to basic banking services such as an increase in consumers who hold current accounts and a reduction in people being denied basic bank accounts. There are also more people banking online or with a mobile app. 1.2 million adults (2%) were digitally excluded, a dramatic improvement from 6.9 million (14%) in 2017.
Sarah Pritchard, executive director of consumers and competition at the FCA, commented: “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.”
Rachael Griffin, tax and financial planning expert at Quilter said: "While the number of people with a bank account has risen and digital exclusion has plummeted, that’s where the good news ends. A tenth of adults still have no cash savings, over a third saving into a pension have less than £10,000, and nearly a quarter are classed as having low financial resilience.
"These are not isolated issues – they’re symptoms of a system that too often expects people to make complex financial decisions without access to affordable support or a foundation in financial education.
"One solution that must not be overlooked is the FCA’s proposed introduction of ‘targeted support’, a middle ground between full advice and generic guidance that could allow firms to offer help where it's needed most – particularly to those struggling with savings or retirement planning. The Advice Guidance Boundary Review must be a turning point, paving the way for new models of support that are both safe and scalable.
"It’s striking that one in ten adults (10%) have no cash savings at all, and another 21% have less than £1,000, figures that remain stubbornly unchanged since 2022. The median amount saved remains just £5,000–£6,000, which can be quickly eroded in a crisis.
"At the other end of the scale, one in five adults have cash savings of £25,000 or more, and around one in ten have savings exceeding £50,000, showing the stark divide in financial resilience across the population. Millions remain just one broken boiler or car repair away from debt reliance.
"However, product reform alone won’t be enough. The root cause is financial education, or the lack of it. Until people feel confident making informed decisions about risk and reward, investing will remain the preserve of the few. That’s why improving financial literacy from the ground up is critical, alongside ensuring accessible support, whether through guidance, targeted support, or regulated advice."
