The relationship between saving and financial wellbeing

Posted on 18th March 2019

woman counting coins

Written by Andy Davis, Head of Marketing at Salary Finance

The Employer’s Guide to Savings examines the role of saving in improving financial wellbeing, the relationship between salary and savings, and the positive effect employers can have by taking an active role in promoting saving in the workplace.

The report is based on a financial wellbeing survey of over 10,000 UK employees, a ‘Rainy Day Savings’ survey of 1,000 Britons as well as a savings survey, and savings account data provided by Yorkshire Building Society (YBS).

The report examines:

  • The link between running out of money and financial worries.
  • The real savings situation for UK employees and how their low financial resilience is impacting financial wellbeing.
  • Why people aren’t saving, and how we can make it easier for them to start and continue a savings habit.
  • What employers can do to help and how to build a business case for your organisation.

The headlines from the research are:

34% of employed Brits regularly run out of money before payday

We also found that this is strongly correlated to having money worries. Those that regularly run out of money are more likely to be suffering financial stress.

Many people have very little financial resilience

Over 30% of people have less than £500 in rainy day savings. This is especially true for younger people where the figure rises to 53% of those aged 18-24 and 45% of 25-34 year olds.

Age and salary are not major factors in having a savings habit

We found that many higher income individuals still struggle to save. The same was true for older age groups. A savings habit is much more closely linked to financial attitudes and behaviours, in particular, spending habits

Convenience matters

The simpler a savings mechanism makes for people to start, and continue, savings the higher the level of adoption. Salary-linked savings and share save schemes encourage people to save.

Employers are in a great position to encourage starting a savings habit

77% of employees trust their employer, suggesting that there is a role for employers
to help their employees build a savings habit, increase financial resilience, and reduce their level of stress, leading to corresponding improvements in retention and productivity

You can find out more about The Employer’s Guide to Savings and download your copy at

Originally posted here

Salary Finance was the winner in the 2019 Impact Awards, Investment Category.

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