Research by supermarket bank Sainsbury's has revealed this week that 20 per cent of people could not survive for more than one month on their current savings if they lost their job.
The bank recommends that people should have three months' salary saved, the average equivalent of around £5,500, to tide them over should they lose their job, instead of the £3,000 that the majority of people have saved.
Savings business manager at Sainsbury’s Bank, Pauline Smith, said: "While it’s alarming that 20 per cent of people in work fear that they may not be able to survive on their savings for more than a month, our research indicates that the situation could in fact be far worse with not even half (43 per cent) of the working population holding more than £1,000 worth of available cash savings."
The survey also found that just under a third of UK workers have less than £500 saved and 12 per cent have no cash savings at all.
The research coincides with Sainsbury's newest account, SaveBack, which allows Sainsbury's customers to pay as they shop.
The account works by allowing people with a Sainsbury's account to transfer money to their savings account when they pay for their shopping at a Sainsbury's supermarket.
Customers hand over their debit card along with their instant access saver cashcard and their chosen amount is transferred to their savings account within two days.
The supermarket chain has been experiencing problems recently as it continues to lag behind other supermarket chains such as Tesco, who now sell clothes, electrical goods and CDs.
The company launched a multi-million pound initiative this week in an attempt to win back customers and boost sales.To read more about Savings Accounts, click here.
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