Millions of people across the UK are treading a precarious financial path, with the latest findings from the Financial Conduct Authority (FCA) revealing that around 13.1 million adults are living with low financial resilience. That equates to one in four adults struggling to keep up with bills, lacking savings, or grappling with persistent debt.
The figures, drawn from the FCA’s Financial Lives survey conducted in May 2024, paint a concerning picture of the nation’s economic fragility. Individuals classified as having low financial resilience often find themselves with minimal or no savings, under mounting financial commitments, or unable to pay bills on time – missing three or more payments over the past six months.
While the number of financially vulnerable adults has remained largely unchanged since 2022 – when it stood at 12.9 million – the underlying issues continue to cause alarm. Most strikingly, one in ten UK adults reportedly has no cash savings whatsoever, while a fifth have less than £1,000 to rely on in emergencies.
The data also shows some positive trends. The proportion of unbanked adults – those without a current account – has fallen from 1.1 million in 2022 to around 900,000 in 2024. Basic bank accounts, which allow access to essential financial services for those with poor credit histories, have seen a rise in usage. Meanwhile, access to digital banking is steadily growing; the number of adults not using online or mobile banking fell sharply from 10.6 million in 2017 to just 3.3 million last year.
However, digital progress hasn’t erased deep-rooted financial concerns. The survey found that 26.4 million adults – nearly half the population – displayed characteristics of vulnerability, including poor physical or mental health, recent negative life events, or low financial capability.
Worryingly, 8% of adults were consistently overdrawn by the time they received their income, a figure unchanged from two years ago. Heavy reliance on cash is also dwindling, with just under 5% of adults identified as heavy cash users. Over half of these individuals reported increasing difficulty accessing cash due to bank, post office, or ATM closures.
Encouragingly, those seeking help are seeing tangible benefits. Of the 1.7 million adults who accessed debt advice or management services in the past year, 61% reported their debt situation had become more manageable. Despite this, a significant portion of adults with investible assets are playing it safe: 61% of those with over £10,000 in assets are keeping most of their money in cash rather than exploring potentially higher-return investment options.
The FCA is also turning its attention to retirement preparedness. A third of adults with defined contribution pensions have saved less than £10,000 – a figure that could spell future hardship without adequate planning and guidance.
Sarah Pritchard, executive director of consumers and competition at the FCA, commented: “Our data shows that finances are stretched for many – with some unable to save for a rainy day. And we know that some do not have the confidence to invest. But there are improvements – more people with current accounts and less digital exclusion. Our strategy will build on this to help people better navigate their financial lives.”
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The regulator’s new strategy includes the rollout of the Consumer Duty, which places greater responsibility on financial firms to prioritise customer wellbeing, improve transparency, and design products that support positive outcomes.
Fraud also remains a prominent concern. The FCA estimates that one in seven adults experienced banking, payment, pension or investment-related fraud in the 12 months to May 2024. Card fraud was the most common, followed by “money muling” and authorised push payment (APP) scams. Most victims did report the incidents, usually to their banks or the police.
Experts say more needs to be done. Claire Exley of Nutmeg urged people to review retirement plans and make the most of workplace pensions, while Oliver Morley of the Money and Pensions Service stressed the importance of accessible, impartial guidance. Helen Undy, from the Money and Mental Health Policy Institute, warned that people with mental health issues remain disproportionately vulnerable, often struggling to navigate complex banking systems or resist unsuitable credit offers.
As living costs remain high and financial pressures mount, the FCA’s latest findings underline the urgent need for increased support and financial literacy to help millions find more secure footing.
