The Coronavirus pandemic has changed the savings habits of UK individuals with 40% now putting money aside, according to a new report.

Workplace savings provider Cushon surveyed 2,000 UK workers to find out their savings habits and see how they have changed due to the Coronavirus pandemic.

Cushon asked how individuals are prioritising their savings.

The survey found that putting money aside for retirement was the second most popular reason for saving, with 26% of workers recognising the importance of saving for later years. Whilst 30% of men were putting money aside for retirement, only 22% of women were.

Recent statistics from the Office of National Statistics found that the level of disposable income being saved rose from 9.6% to 29.01% this year.

The Cushon survey found that one in five UK adults were saving for a better work/life balance with many enjoying the flexibility of working from home and not having long commute times.

A similar number (17%) were saving for a deposit for their first home – however, while 22% of women were putting money aside for this reason, just half the number of men (12%) were doing the same. 

The future of their family members was another reason those surveyed were saving. 15% of those surveyed were saving on behalf of their children.

Steve Watson, head of proposition, Cushon, said: “Covid-19 has made us all more aware of the need to have a financial buffer in place to protect us in the event of the unexpected. Despite financial injections from the government, worries about job losses and further setbacks mean that many of us are now worried about how to cope financially should the worst happen. 

“What’s reassuring, however, is just how many of us now recognise the importance of having holistic savings – saving for our short to mid-term priorities but also having a pension and putting money aside for the long-term future. Financial wellbeing has never been more important and using the workplace to foster greater savings habits is a really effective way of encouraging more people to save. For those that can, fostering regular savings habits can really help navigate any ups and downs and help individuals feel more in control of their financial situation.”

Cushon surveyed 2,000 UK adults on financial security and its importance in September 2020.