1 in 10 People Lack Emergency Funds: Do You Have Yours?

Jakarta, VIVA – Many households remain financially vulnerable. When facing unexpected expenses such as vehicle repairs, home damages, or other emergencies, much of the public lacks adequate reserve savings.

A recent survey in the UK indicates that public financial resilience is still low, with many people unprepared for sudden cost shocks.

Based on research involving over 13,000 respondents who are members of an automotive association, it was found that one in ten adults, or about 10 per cent, have no savings whatsoever. This condition makes them highly vulnerable when facing emergency situations.

Additionally, around 50 per cent of respondents willing to disclose their financial situation have savings of less than six months’ living expenses. Even around 30 per cent have emergency funds for less than three months of basic needs.

As is known, financial experts generally recommend that people have emergency funds to cover living costs for at least three to six months to better prepare for income loss or sudden large expenses.

However, this data shows that many people still fail to meet that standard. When asked how they would pay for an unexpected cost of £500 or about Rp11.5 million, around 15 per cent of respondents said they would use easily accessible savings.

Meanwhile, 43 per cent would rely on their main account, and 31 per cent would use credit cards. Then, for larger costs, such as £5,000 or about Rp115 million, around 25 per cent of respondents admitted they did not know how to cover such expenses.

This situation is increasingly concerning for higher amounts. As many as 38 per cent of respondents did not know how to pay for costs of £10,000 or about Rp230 million, and nearly half, or 48 per cent, were at a loss if facing costs above £20,000 or about Rp460 million.

This uncertainty indicates the still weak financial planning of households in facing emergency situations.

The head of the loans and savings division from the institution conducting the survey said that unexpected costs are part of life, but many people do not yet have sufficient financial cushions.

“Unexpected costs are part of life, from urgent car repairs to household bills. But many people do not have a financial cushion. Even small regular contributions can help build a safety net over time,” said Adam Robery, as quoted from The Independent, Thursday, 14 May 2026.