The UK is in the grip of a financial wellbeing crisis, with money worries taking a heavy toll on workers’ performance, health, and resilience, according to new research from the Building Societies Association (BSA) released to mark UK Savings Week.

Financial stress at work

The research shows that financial concerns are not confined to personal lives, they are spilling into the workplace:

• 22% of employees say money worries have negatively affected their performance at work.
• 19% admit they have taken time off due to illness caused by financial stress.
• 30% of workers are just one payday away from serious financial difficulty.
• Young workers are particularly vulnerable: among those aged 18–24, a third (33%) said financial stress had made them ill and forced them to take time off work.

Living on the financial edge

While building a savings buffer is proven to improve resilience, optimism and even sleep quality, many UK households lack that security:

• 27% of adult have less than £1,000 in savings.
• 12 have no savings at all.
• 21% could not cover a £300 unexpected expense, rising to 36 among under-24s.30% could not survive more than a month on their savings if they lost their income, increasing to 44%for those aged 35–44.

The findings demonstrate how even modest savings make a difference. Among those with under £1,000 saved, 60% said they couldn’t get by for more than a month without income. But this dropped to 33% for those with savings between £1,000–£9,999.

Signs of change

Despite the stark picture, there are signs of positive behaviour change:

• 52% of UK adults now identify as Savers, compared to just 22% who see themselves as Spenders.
• 67% of Savers put money aside every month, compared to just 15% of Spenders.
• Savers also hold nearly double the reserves: £34,353 vs. £17,693.

Encouragingly, even among those without savings, almost half (47%) believe they could start by saving at least £10 per month. Younger people are particularly optimistic, with 89% of 25–34-year-olds confident they could save more, and 68% open to discussing money with friends and family.

Voices of support

Shirley Ballas, Strictly Come Dancing Head Judge and UK Savings Week supporter, highlighted the importance of taking the first step “This research shows just how deeply money worries can affect our wellbeing. But it’s also encouraging to see that many people who aren’t currently saving feel they could start building a regular savings habit."

 “Saving, a bit like dancing, can feel intimidating at first. Taking that first step is often the hardest part. Progress might feel slow, but with practice, it becomes more natural and eventually part of your routine. Having some money set aside for when life takes an unexpected turn can make all the difference.”

Andrew Gall, Head of Savings and Economics at the BSA, stressed the link between savings and resilience: “This research lays bare the human cost of financial insecurity and how money worries are quite literally making people ill. But the findings also highlight the benefits of saving. We know that those who are able to save, even small amounts, have reduced anxiety and are more able to deal with life’s shocks. UK Savings Week encourages everyone to build better habits, whatever their starting point.”

The research underlines the urgency for employers, policymakers and savings providers to work together to tackle financial fragility. With the cost-of-living crisis continuing to bite, workplace initiatives such as payroll savings, alongside national campaigns like UK Savings Week, offer practical solutions to help individuals move from surviving to thriving.