One in five Brits dipped into savings to pay for essentials last month

With families still having to tighten their belts in the wake of the recession, new research shows that one in five Britons (20 per cent) had to dip into their savings in September to pay for essentials.

A survey from from consumer group Which? depicted a nation forever worried about savings and having to break into their nest eggs to afford the cost of living.

According to results cited by freshbusinessthinking.com, around four in ten Brits (43 per cent) said their finances were so low that they would struggle to deal with an unexpected expense. 

Half of the people questioned admitted to being worried about the state of their savings (49 per cent) and many people would have made this issue even worse last month. A quarter of 50 – 64-year-olds claimed to have resorted to using their savings to pay for items in September, with food (49 per cent) the most common expense.

Talking at which.co.uk, the company's executive director Richard Lloyd commented: “Our research paints a worrying picture of consumers vulnerable to financial shocks and unable to save for retirement, with the rising cost of living forcing them to dip into their savings to pay for essentials like food.”

Mr Lloyd said Which? would be supporting the Financial Conduct Authority in its review of the savings market, urging the regulator to take action in helping people find the best places for their money.