The increased cost of living is the main barrier for adults maintaining a savings goal, with those in the ‘squeezed middle’ age bracket hit the hardest, Paragon Bank research has found.

Paragon’s survey of 2,000 adults revealed three in five (62%) admit to struggling to maintain savings commitments, with 33% highlighting the increased cost of living was the main obstacle. Other barriers included a lack of income (28%), high outgoings (18%) and prioritising debts (15%).

Those aged between 35 and 55 were most likely to cite the cost of living as the main hindrance to saving, with 37% of respondents in this category reporting problems compared to 31% of those aged between 18 and 34 and 55+.

In addition, just under three quarters (74%) of adults report having financial anxieties about 2022, with inflation the main cause of concern. The most common financial anxiety is the cost of bills increasing (51%) followed by an increase in the cost of goods and services (44%) and general economic uncertainty (23%).

Women are more likely than men to be anxious the about the cost of bills going up (56% vs 46%) and the increased cost of goods and services (49% vs 39%).

Again, those aged 35-55 were more likely to be worried about the cost of living than other age brackets. Nearly three in five (57%) of this age bracket are worried about rising bills (18-34: 40% / 55+: 53%), whilst just under half (48%) said they were concerned about the increased cost of goods (18-34: 36% / 55+: 47%).

Paragon Bank Savings Director Derek Sprawling said:

“The rising cost of living is impacting us all and putting pressure on household budgets. Maintaining monthly savings levels or committing towards a new savings in this environment can be challenging, but it’s important that people keep focused on their finances and make the most of their money.

“Over 70p in every £1 saved into Easy Access accounts in the UK is languishing in accounts paying 0.1% or less – less than seven times the best rates available in the best-buy tables¹. Savers in low paying accounts are missing out on considerable interest so it’s important for people to look for the best deal. Taking the time to search for better paying accounts can pay off, particularly as savings accounts can grow quickly.”