One in three UK adults (32%) who were saving for a home deposit have either stopped or decreased the amount they were saving in response to the rising cost of living, a new study has indicated.

Research by TSB also revealed that over half (53%) of respondents are either very worried (25%) or fairly worried (28%) about not being able to save enough for retirement.

The findings, based on a study of over 5,800 participants, found that 83% currently have worries about their personal finances. With economists expecting the crisis to continue and potentially worsen into the autumn, 15% of the study’s respondents revealed that in the last six months they have fallen behind or missed payments for credit commitments or domestic bills – for three or more months.

For those who are worried about their personal finances, TSB also stated that this is already having a negative impact on their wellbeing. The research found that 31% say money worries are negatively impacting their mental health while 22% say it is negatively impacting their sleep.

Director, branch banking of TSB, Carol Anderson, commented: “This research exposes the emerging gap between resilient households, with healthy rainy-day savings built up during the pandemic, and those with no savings who are struggling to get by.

“For those who are feeling worried about the cost-of-living, it’s important to speak to someone that you trust. We’ve seen TSB customers coming to us for support and we’re holding around 5,000 customer meetings every week to help them manage their money and feel more confident about their plans.”

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