SCOTS are generally not prepared for the unexpected with new research showing that one in five has no savings to fall back on, while a third (33 per cent) admit that they are not putting enough cash aside for the long term.
The How Scotland Lives study from Bank of Scotland, which is now in its third year, found that 21 per cent of Scots have not put any money away for a rainy day – up from 18 per cent a year earlier.
Two fifths of those surveyed (38 per cent) have savings of less than £2500.
That equates to just over a month’s wages for the average Scot, and is a long way off the three to six month’s remuneration that is seen as the minimum level of savings recommended by experts.
The Bank of Scotland research surveyed more than 2000 people over the age of 18 across Scotland in the first week of December last year, to get to the bottom of the issues that people living in Scotland said really mattered to them.
These included subjects such as housing to happiness and schools to financial security.
Of those who do not have any savings put aside for the long term, almost half (48 per cent) say they cannot afford to save, while more than one in 10 (12 per cent) say there is always something else to spend the money on.
A similar proportion (11 per cent) say their main priorities lie in the short term.
Of those who are managing to put some money aside, more than one in 10 (14 per cent) say they are simply saving towards a short-term goal, such as a holiday.
A similar proportion say they are saving only for the long term, for example to help secure their retirement.
More than a third (34 per cent) say they are saving for both.
A fifth of those polled (21 per cent) admit that they are definitely not saving enough to meet their long-term needs, though almost a third (30 per cent) say they are saving enough or more than they need to.
The most popular reasons for long-term saving are to provide for a more secure future (55 per cent), to help ensure they have a more comfortable retirement (47 per cent) and for emergencies (47 per cent).
According to the survey, people living in the Glasgow area are saving the least, with more than a quarter (27 per cent) saying that they do not have any savings to their name.
What’s more, almost one in 10 (nine per cent) aged between 18 and 34 feel they do not have anything to save for in the long term.
Mike Moran, director Bank of Scotland, said: “Our research suggests that many Scots have literally nothing to fall back on if they were to get into financial difficulties.
“It’s recommended that everyone has three to six month’s wages in savings, just as a backup in case something unexpected happens.”
He added: “Opening a savings account and setting up a direct debit can be a good first step towards achieving your savings goals and it’s surprising how quickly savings can grow.”
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