More than 12 million Britons have reduced their savings pot or stopped saving altogether in order to fund their day-to-day living, according to Moneysupermarket.com.
The comparison site also found that 23 million UK savers in total have been negatively impacted by the dismal economy.
Some consumers have had to spend their money on increasingly expensive household bills instead of setting it aside.
One-third of Brits have been affected by a drop in income, which consequently prevented them from saving.
Kevin Mountford, head of banking at the comparison site, is urging customers to try and set aside as much spare income as they can.
"Even putting away just a few pounds a week can add up - as every penny counts. Over time this will build up and help to pay for unexpected bills," he said.
However, a Resolution Foundation study found that 30 per cent of consumers regularly have nothing left to save of their monthly income, and sometimes even spend more than they earn.
Many people are having to cut down on non-essential luxuries, such as clothing, drinking alcohol and eating out at restaurants, just to break even.
Posted by Kim Burns
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