Feeling of financial security ‘takes £21,000 savings’

Some savers are putting money in property, jewellery and art to earn
Some savers are putting money in property, jewellery and art to earn

The average Briton needs £21,000 in savings to feel financially secure, a survey has found.

Many savers are less than £5,000 short of this goal, according to the research from Nationwide Savings.

A survey of 2,000 people with a savings account found people typically have £16,460 put away. When asked how much cash is needed to feel financially secure, the average answer was £21,313.

Women’s savings tended to be much lower than men’s, with the average female saver having just under £13,000 and the typical male saver having just over £20,000 put away.

Women were also more likely than men to feel anxious as a result of their lack of savings, with 44% of women having found themselves feeling this way, compared with 30% of men.

The survey also suggests low interest rates on traditional savings accounts could be driving people to put their cash in a wider range of places, some of which could carry a greater risk.

While returns on savings accounts may be low generally, money held in UK banks and building societies does have the protection of the Financial Services Compensation Scheme (FSCS), which compensates savers if their provider goes bust.

One in seven (14%) savers surveyed are investing money in property, 6% are putting their money into jewellery and 6% hope to make decent returns by investing in art and antiques.