According to the Financial Conduct Authority’s (FCA) latest Financial Lives survey, millions of UK adults are living with little or no financial safety net.
The report found that 13 million people – a quarter of the adult population – have low financial resilience, meaning they struggle with debt, lack savings, and often miss bill payments. This figure has remained steady since the FCA’s last survey in 2022, despite inflation and rising household costs.
Worryingly, 10% of UK adults have no savings, while 21% have under £1,000 set aside.
Debt levels are also concerning. Almost half of all adults have unsecured debt, with a median balance of £6,300. For 18-34-year-olds with debt, this rises to £12,500 – although this figure drops to £1,300 when student loans are excluded.
The report also highlighted growing mental health concerns, with nearly 12 million people feeling anxious or overwhelmed by their financial situation. Among adults with credit or loans, 40% reported stress or anxiety.
Use of buy now, pay later services has also increased sharply, particularly among lone parents (40%) and women aged 25-34 (35%). These products are still unregulated.
Other findings show that 2.8m people are stuck in persistent credit card debt, and 3.8m retirees fear their pension won’t last. Nearly 10m people struggle to access bank branches, compounding financial pressures for many.
Despite these challenges, the FCA noted that the situation hasn’t worsened and that free support is available for those who need it.
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