Over half (55%) of UK adults have changed their savings or financial plans in response to rising living costs and inflation, Chetwood Bank has revealed.

The digital challenger bank’s latest survey of 1,000 adults found that this figure was highest in Wales (71%) and London (64%).

Chetwood also said its research highlights the difficulty that many households face with financial planning and establishing good savings habits.

For instance, 56% of respondents below retirement age stated that they intend to move money into their savings but often do not follow through on their plans, while 57% add money to their savings but then have to withdraw it for everyday living costs.

The bank said this suggests that for many households, savings are functioning less as a long-term financial buffer but more of a short-term tool to manage everyday costs and unexpected costs.

This is supported by 39% of those surveyed stating that they would struggle to cover an unexpected £300 bill.

Concerns around inflation also remain, with 67% of adults worried about its impact on the value of their savings, while 53% said financial decisions feel more complicated today than they did 10 years ago.

Director of savings at Chetwood Bank, Ben Mitchell, said: “"For many households, money is set aside in their savings but frequently comes back out again to manage everyday costs. With global economic factors continuing to shift, from energy prices to wider geopolitical pressures, the cost of living remains uncertain and financial resilience is still under strain.

"It’s been proven that having a buffer of £1,000 in savings is linked to better sleep and reduced stress, so building a meaningful savings pot should be a priority for households everywhere.

"Our research shows savers today are finding financial decisions more complicated than ever, which underlines the importance of a no nonsense approach to savings, with straightforward products and clear information that help people feel confident in their choices. Starting small and building that habit over time is often the most effective way to take control of your financial position, and the best time to start is today."

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