The average UK adult puts away 5.9 per cent of their monthly income for a rainy day, it has been reported.

However, the study, conducted by Sainsbury's Finance, also found that 16 per cent of adults are saving less than they were 12 months ago, compared to the six per cent who have upped their savings.

A further 37 per cent of survey respondents said they were unable to put away anything at all, with cost of living, personal circumstances and debt cited as factors behind this.

Neil Cameron, savings manager at the firm, said the decline in savers is "worrying".

He advised: "At the very least, it is advisable to have money set aside for emergencies.

"It's important to pick an account that provides a consistently attractive return so that your savings are working their hardest for you."

According to Mr Cameron, putting away as little as £1 every month will help people develop a good savings habit.

The average Brit begins to put money away for their retirement when they are 28, AXA reveals.

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