A report published by insurance company Aviva has revealed that the savings gap between low and high income families in the UK has grown by 25% year on year.
According to Aviva’s latest Family Finances Report, families with low incomes have just £95 in savings and investments, whilst those with high incomes have an average of £62,885.
25% of families in the UK are now classed as low income, whilst 8% are classed as high income.
The report also suggested that families’ savings have fallen to the lowest level in 18 months as a result of a decline in typical monthly incomes. Such incomes have fallen to £2,006 – representing a two-year low.
Paul Brencher, Managing Director of Individual Protection at Aviva, stated: ‘The gulf between low and high income families is showing signs of widening, in a worrying indication that those less fortunate are finding their finances increasingly stretched.
‘Without a financial back-up, any sudden unexpected expense could put low income families in particular under added pressure.’