Financial security, rather than holidays or long-term wealth, is now the main reason people save.
New research has also revealed that unexpected household costs have overtaken future aspirations as the main reason for saving.
A UK-wide study, published ahead of UK Savings Week from September 21 to 27, found that two in five savers (41%) are putting money aside for unexpected or irregular expenses such as a broken boiler, car repairs, vet bills or other unforeseen costs.
By comparison, just one in seven (14%) saves as an investment, while only 5% said investing was their main reason for putting money away.
The findings suggest that, amid continued pressure on household finances, saving has become less about getting ahead and more about avoiding financial difficulty when something goes wrong.
Almost six in 10 current savers (59%) said their savings gave them a sense of security and protection against emergencies - far outweighing any other benefit of having money set aside.
However, the research also highlighted the difficulty many people face in building that cushion.
Six in 10 adults (60%) said they could save more if they had money left after paying for essentials, making everyday household costs the biggest barrier.
The study was carried out by the University of Bristol’s Personal Finance Research Centre as part of a three-year programme examining the role savings play in people’s lives.
Earlier research from the programme found that households with at least £2,000 in savings were almost 60% less likely to fall behind on household bills at a later date.
Even considerably smaller savings pots were found to reduce the risk of financial hardship.
Jane Millar, Chief Operating Officer at Progressive Building Society, encouraged people here to build a financial buffer – no matter how small.
“For many households across Northern Ireland, saving isn’t about a luxury purchase or for a future ambition,” she said.
“It’s about knowing that an unexpected repair or bill won’t immediately become a crisis.
“The challenge is that, after paying for essentials, many people simply don’t have much left to put away.
“That can make saving feel out of reach, but a small, regular contribution can gradually create a useful buffer and help establish a habit that lasts.”
“Over time, that savings pot can make day-to-day finances feel a little easier to manage. It gives people more room to deal with the unexpected and can reduce some of the worry that comes with managing household finances,” she said.
“UK Savings Week is a useful opportunity to look at what you can realistically afford, set up a regular savings plan and check that any money you already have is in an account paying a competitive return.”
Spearheaded by the Building Societies Association (BSA), UK Savings Week aims to encourage people to develop regular savings habits and make more of the money they already hold.
Around one in 10 people across the UK has no savings, while more than £300 billion remains in accounts paying no interest.
The campaign has set targets of creating two million new regular savers and moving £50 billion out of accounts paying 0% interest by 2030.
ENDS