The organisation carried out research, which showed that 4 in 10 (16.8 million) working-age people across the nation lacked a savings buffer, with less than £100 in savings available to them at any time.

Some 23% of working-age adults on a household income of less than £13,500 had more than £1,000 in savings and 40% save every/most months.

The report found only 38% of what it called 'non-savers' had a pension that they have paid into, compared to 59% overall, with 34% expecting to depend on the state pension.

A further 31% didn’t know how they will fund their retirement.

They were also least likely to have made a will or planned for the costs of care.

Non-Savers are the most likely to be over-indebted (defined as either finding it a heavy burden to keep up with their bills and credit commitments, or having missed payments in three of the last six months).

Nick Hill, Money Expert at the Money Advice Service, said: “These figures show the millions put at risk by the saving gaps in the UK. Everyone’s situations and abilities are different, so it’s important to find an approach to saving that’s right for them and their household. For some on low incomes, saving is a real challenge as they may simply lack the income needed to save at all.

“But for many, developing a savings habit is very achievable. Regular saving is key to building up that buffer against those life surprises.

“Our research also showed that if people set a manageable savings target, they’re usually able to reach it. Setting a savings goal – in the case of our study of £100 a month – was shown to have a positive impact on people’s financial skills and their attitude towards savings.”