£92,507: Price of financial peace of mind

Brits reckon they need £92,507 for financial peace of mind – enough to put money worries to bed and make them feel secure.

For men the cost of security was £101,999, while for women it stood at £82,193, according to research from Kaupthing Edge.

However, building up the necessary nest egg – the equivalent of three times the average UK salary - is a tough job, as a third of people claim debts are holding them back from saving.

Corrine Sweet, psychologist and author of Stop Fighting about Money, said: "Financial security is not an official term or status but is the amount people feel they need in order to not panic about their finances.

"The research by Kaupthing Edge certainly shows the dream of financial security is a far cry from reality for many.”

Furthermore half of people are failing to make their money work for them by not opting for the best savings and investment products on the market, further research from the organisation, UK subsidiary of Icelandic bank Kaupthing, finds.

Some 53 per cent of people say they leave any spare cash at the end of the month in current accounts – at low interest.

"People are going to have to make their money work hard for them in order to gain this peace of mind," said Ashley Whittaker, head of retail savings at Kaupthing Edge.

“This includes finding an appropriate place for any substantial amounts of money left over at the end of each month. Leaving that money in your current account means that, not only may you not be getting the best returns on this money but you are also more likely to spend it on unnecessary purchases.

“As we now face the prospect of an economic slowdown it is more important than ever that people ensure they are making the most of their earnings."