This report considers the role that savings play in building households' longer-term financial security, protecting them from difficulties and leading to more diverse future product-holding. 
 

The importance of financial resilience is well-recognised but how much should households be aiming to save to avoid financial difficulties?
 

This report aims to shed light on this question and explores how the level of savings held by a household in earlier years may affect their later likelihood of three types of financial difficulties:

• Falling behind with bills;
• high levels of borrowers; 
• and a measure of subjective financial difficulty.