Young and low-paid workers in UK 'most vulnerable to interest rate rise'

Report says young adults suffered 36% drop in savings since 2005 while top 20% of earners 'more financially secure today than going into the downturn'

Britain's younger workers have few funds in the bank and are vulnerable to higher interest rates following a prolonged slump in incomes, according to a leading thinktank.

The Social Market Foundation found that 26 to 35-year-olds were among the worst affected by the financial crash in terms of lost wealth while other groups emerged in better shape.

Related: Incomes rise but working-age households remain worse off

Related: The Observer view on London's wealth gap