A report published by the Resolution Foundation has warned that UK families are facing a ‘triple savings challenge’ of insufficient ‘rainy day’ savings of at least £1,000.

The Foundation also warned that families face an ‘inability to cope financially with bigger life events’ and inadequate retirement incomes.

It said that these issues can be addressed by ‘building on the success of auto-enrolment into pension saving’. The Resolution Foundation has called for auto-enrolment contributions to be gradually increased from 8% to 12%.

Molly Broome, Economist at the Resolution Foundation, commented: ‘Families across Britain face a triple savings challenge – not saving enough for rainy days, bigger life events, or for a decent income in retirement.

‘One-in-three families in the country have less than £1,000 in savings – which left many people exposed during the cost-of-living crisis – while around 13 million individuals aren’t saving enough for an adequate income in retirement.

‘We can address all three challenges by building on the success of pensions auto-enrolment to opt more people into both easy access and long-term saving.’