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Half of Brits had no savings before the COVID-19 pandemic

One in eight Brits have spent all their savings during the pandemic. Photo: Gareth Fuller/PA Archive/PA Images
One in eight Brits have spent all their savings during the pandemic. Photo: Gareth Fuller/PA Archive/PA Images

Half of all Brits had no savings prior to the COVID-19 pandemic, putting them in a vulnerable position before the crisis even began, research suggests.

While 46% of Brits have had to dip into their savings this year, according to a survey of 1,000 by thinkmoney.

However, half had no savings to dip into – leaving many to live on reduced wages or benefits.

The remaining 4% have had to borrow credit or take out a loan as a means of trying to survive the financial struggle that has come with the coronavirus crisis.

Of those with savings, one in eight or 12% have now used the money they set aside, just to survive this year.

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One in 10 have spent between half and three quarters of the money they had saved.

Meanwhile, 6% have spent a quarter of their savings, and 18% have spent 10%, the survey found.

Those in Yorkshire and the Humber been hit hardest, with nearly a fifth (18%) now having used up all their funds.

It's a similar tale in the West Midlands, where 16% of Brits have spent all of their savings, placing them second as the most impacted.

About 10% and 12% of Yorkshire and the Midlands' workers, respectively, are – or were – employed in manufacturing, which is among the industries most affected by the coronavirus pandemic – potentially explaining the discrepancy.

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Those in the east of England, east Midlands, and Scotland have also been disproportionately affected, with 14% of people in all regions losing all their savings to COVID-19.

On the other hand, the south-west has been the least financially impacted by the pandemic, with just 4% of residents surveyed spending 100% of their savings.

The study also found Brits aged 65 and over are more likely to have used all of their savings, at 13% – potentially due to older generations being more vulnerable and having to shield.

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