Having some cash in the bank can provide a degree of financial comfort for most people.
Some new research from Legal & General has found that people would like an average of £93,730 in their bank accounts in order to feel financially safe and comfortable.
This compares to savings of just £1,000 for the typical British household.
As is often the case with this kind of research, there were big regional differences in the findings.
The average Londoner would feel financially safe and comfortable with £109,020 in the bank, whereas in the South West the amount is much less, at £73,910.
Our financial safety threshold also varies with age.
The 45-54 year old age group have the highest average financial safety threshold, at £115,570. Those in the 18-24 year old group have the lowest, at £41,560.
Knowing how much cash we need in the bank to feel financially secure should be more than a matter of guesswork.
A precise figure can be calculated as part of the Financial Planning process, by using lifetime cash flow forecasting to determine whether you will run out of money during your lifetime.
We often find that the comfort our clients receive by going through the LifeWealth Design process is as valuable as knowing they can afford to live the life they choose.
Photo credit: Flickr/David~O
