Financial inertia leaves 18 million Brits with outsized wealth gaps

More than a third of UK adults say their emergency savings would not cover three months of expenses. This financial inertia is the result of 32% of respondents in an L&G study finding that their life circumstances changed significantly over the last decade, while their financial habits remained the same. A third of respondents save no more than they did 10 years ago despite rising incomes, and 28% save less. Over a quarter of respondents have not reviewed their savings rate in the past three years. Long-term planning is also stagnant. Nearly two in five respondents have not increased pension contributions in line with pay rises, and 32% rely on default contribution levels. 57% of respondents worry they have missed opportunities to grow their wealth.