Over half (54%) of UK savers expect to use up all of their emergency savings as the cost-of-living crisis puts pressure on households, according to a new report.

Almost three quarters (71%) of UK adults have an emergency fund, according to new research from wealth manager Charles Stanley.

Men were more likely to have an emergency fund than women, with a third of women not having any emergency fund.

Women were also more worried they will use up their entire emergency savings pot to keep up with rising prices. Six in ten (61%) of women worried about this, especially those aged 35-44 (66%).

Around half (53%) of UK savers were worried they will not be able to save for their emergency fund due to the current economic environment, with 20% ‘very concerned’. This was more true of women (61% vs 46%) than men.

Four in ten savers said they were worried about having to rely on family and friends for help, with 35% expecting to have to take out personal loans to make ends meet and 27% expecting to have to downsize property.

The average fund is able to last four months and three weeks as a financial safety net.

A quarter (28%) of those with an emergency fund said it could cover between two weeks and two months of expenses. However, 10% said it would not last over two weeks.

Of those with an emergency savings pot, a quarter (25%) of people have never needed to use it. One in ten (9%) said they dip in to the pot less than once a year, while others lean on it more regularly.

Only 12% of savers had never topped up their emergency fund, with 36% topping it up monthly, and 10% weekly.

Emergency fund coverage correlated closely with personal income. One in four (38%) of those earning less than £20,000 a year did not have an emergency fund, falling to 18% of those earning between £50,000 and £60,000.

Those working were more likely to have an emergency fund, with only a quarter not having a fund in comparison to 46% of those unemployed and job hunting.

Of those without an emergency fund, the most common reason for not having one was due to wages barely covering the cost of living, and therefore being unable to afford to save; this was true of 27% of people who didn’t have one. 22% said they couldn’t save as they were trying to pay off debt, and 14% hadn’t had time to set one up.

One in ten (13%) of those without an emergency fund used to have a fund, but it has now been used up.

Lisa Caplan, director of OneStep Financial Planning at Charles Stanley, said: “For those dipping into their savings, it’s vital that it is a considered behaviour; it might be necessary, but there may be options which have been overlooked. Getting guidance from a financial adviser, a charity, or trusted consumer champion could help avoid people eating away at their hard-earned savings, especially at a time when savings are starting to generate interest.” 

Censuswide surveyed 2,086 UK adults on behalf of Charles Stanley between 9 June and 13 June.