One in five Scots are standing on a financial cliff-edge with no savings set aside for future emergencies.
And those who are setting aside funds for a rainy day are saving hundreds of pounds less that they used to.
According to the 2014 Scottish Widows Savings Report, the average amount Scots have put aside for the future has fallen by £610 year-on-year.
The average amount people had in savings last year was £9,643, down from £10,073 in 2012.
The total number of people who managed to put away savings fell from 31% to 29% over the same period while more than half of those surveyed (53%) said they are saving less than they did before.
Financial experts recommend people build up an emergency fund of savings which is enough to cover three months’ essential expenditure, such as rent or mortgage, heating and food.
The eighth annual Scottish Widows Savings Report, which studies the savings habits of more than 5,000 people across the UK, found family pressures are continuing to have a big impact on people’s ability to save for the future.
Almost half of Scots (43%) said they had loaned “a substantial amount” of money to family members.
A quarter of people had lent money to their children, most commonly to cover living expenses (39%), to put towards a house deposit (38%), or to pay off debt (33%).
The study also found lending to family members had a serious effect on parents’ and grandparents’ finances.
A fifth (20%) of all Scottish parents and grandparents said they were saving less as a result of lending money to family members and almost one in 10 (8%) said they had to cut back on day-to-day living costs due to family lending.
David Lascelles, savings expert at Scottish Widows, said: “It is concerning that despite economic improvements, the amount that Scottish people are setting aside for a rainy day is actually falling.
“Even more concerning is the fact that one in five people in Scotland still have no nest egg whatsoever. Our research shows that many people are still only thinking in the short-term.
“For instance, almost half of people in Scotland said they prefer to spend their money rather than save and almost two-thirds said they know they are not saving sufficiently for their long-term needs.
“This problem is exacerbated by family pressures that eat further into people’s savings, particularly for those in middle age. We need to tackle this culture of short-termism and encourage people to adjust their priorities.