Many savers are 'confused' as to what their strategy should be in the current recession - with rising unemployment leading to fears over personal finances.
"Emergency savings" are becoming an increasing concern for Britons, who are facing a recession in the economy and rising unemployment rates.
A report from National Savings & Investments (NS&I), released today, shows that 32 percent of people do not believe that they have enough savings to let them deal with "unexpected events", such as job loss. Previous figures from the firm suggest that possible future emergencies was cited as the main reason to put money by for 56 percent of savers.
The findings come at a time when the economic downturn has led to unemployment rising to a decade-long high of 2.03 million. Some analysts also believe that over a million more people could lose their jobs over the next year, as the recession grinds on.
Despite this, NS&I found that another 32 percent of Britons feel that life is "too short" to worry about "money issues". Just under one in four (22 percent) said that they were saving for an emergency - but were not keeping it in a fighting fund separate from their main savings account.
Dax Harkins, NS&I's senior savings strategist said, "We all face the possibility of situations that we simply have no control over - so it's essential that we are all prepared for any emergency that will require immediate access to money, and ensure we are saving enough to cover us in a crisis.
He added: "Confusion seems to reign for Britain's savers as to what counts as a financial crisis, how to save for such an event, and how to manage safety funds."
The NS&I poll also revealed that the typical amount thought by poll respondents to be needed to protect them in case of emergency was around £5,400.
