The average savings by age in the uk

When it comes to savings, everyone’s journey looks different. Some are just getting started, while others have been diligently building their financial reserves for decades. But where does the average person stand? Here’s a breakdown of the average savings in the UK by age group, based on recent data. Take a look and see how you compare.

• 18-24 years: £3,636
  This age group is just beginning their financial journey. With student loans, entry-level salaries, and rising living costs, it’s no surprise that savings are relatively low. Many in this age bracket are focused on building their careers, exploring education, or gaining work experience. While £3,636 might not seem like much, it’s a solid start. The key here is developing healthy financial habits early, such as budgeting and setting aside even small amounts for emergencies. If you’re in this category, don’t stress—every small step counts!

• 25-34 years: £3,748
  Slightly higher than the previous age group, these savings reflect the early stages of career growth and financial stability. Many in this age bracket are starting to prioritize saving for milestones like buying a home or starting a family. At this stage, it’s important to focus on paying off high-interest debt, such as credit cards or student loans, while simultaneously building an emergency fund. Saving doesn’t have to be complicated—automating your savings and taking advantage of employer retirement schemes can make a big difference over time.

• 35-44 years: £5,714
  By this stage, savings are starting to grow. Many in this group are balancing expenses like mortgages and family life while aiming to build a more substantial financial cushion for the future. This age range often faces competing priorities, such as saving for children’s education, upgrading a home, or investing in retirement funds. One useful strategy is to revisit and refine your budget regularly, ensuring that your savings goals align with your long-term plans. Diversifying your investments can also help grow your wealth more effectively.

• 45-54 years: £9,402
  This age group often focuses on long-term financial security. Whether it’s saving for retirement or helping children with education costs, priorities begin to shift toward safeguarding the future. At this stage, it’s vital to maximize contributions to retirement accounts and review your investment portfolio to ensure it matches your risk tolerance and goals. Building a financial buffer for unexpected expenses, such as medical emergencies or home repairs, is equally important. Many in this age range also start considering estate planning, ensuring their assets are allocated according to their wishes.

• 55-73 years: £18,245
  As retirement approaches, savings see a significant increase. Many individuals in this group have spent decades building their nest eggs and are now prioritizing financial stability during their golden years. With retirement on the horizon, it’s important to assess whether your savings will support your desired lifestyle. This includes accounting for travel, hobbies, and healthcare expenses. If your savings fall short, there’s still time to make adjustments—such as downsizing your home, reducing discretionary spending, or considering part-time work during retirement.

• 74+ years: £36,940
  This age bracket represents the culmination of a lifetime of financial planning and saving. With pensions, investments, and careful spending, many have achieved a level of financial comfort. At this stage, priorities often shift toward preserving wealth and enjoying retirement. This may include funding long-term care, supporting family members, or leaving a legacy for future generations. Regularly reviewing your financial plan and consulting with a financial advisor can help ensure that your savings last throughout your retirement years.

Understanding how your savings compare to the average can provide valuable insights into your financial health. However, it’s essential to remember that these figures are averages and not strict benchmarks. Everyone’s circumstances are different, and your savings goals should reflect your unique needs, lifestyle, and aspirations. For some, saving for a home or retirement may take precedence, while others may prioritize paying off debt or funding education.

The statistics reveal that many people struggle to build substantial savings. Factors such as rising living costs, stagnant wages, and unexpected financial emergencies can make it difficult to set aside money. Additionally, a lack of financial literacy often leaves individuals unsure of how to manage their money effectively.

Here are some common challenges to saving:

1. Cost of Living: Rent, utilities, and everyday expenses can consume a significant portion of income, leaving little room for savings.
2. Debt: High levels of personal debt, including credit cards, loans, and mortgages, can hinder savings efforts.
3. Lack of Financial Planning: Without a clear savings plan, it’s easy to lose track of spending and miss opportunities to save.
4. Emergencies: Unexpected expenses, such as medical bills or car repairs, can derail even the best savings plans.

No matter your age or financial situation, there are practical steps you can take to improve your savings. Here are some strategies to help you build a stronger financial foundation:

1. Start Small, but Start: If saving feels overwhelming, begin with small, manageable amounts. Even setting aside £5 a day can make a significant difference over time. For example, saving £5 a day adds up to £1,825 in a year—a solid start toward any financial goal.
2. Create a Budget: Track your income and expenses to identify areas where you can cut back. A budget helps you stay accountable and ensures that your spending aligns with your priorities.
3. Automate Your Savings: Set up an automatic transfer to a dedicated savings account each month. This makes saving a habit and reduces the temptation to spend.
4. Take Advantage of Interest: Look for high-interest savings accounts or consider investing to make your money grow over time. Compound interest can significantly boost your savings if you start early.
5. Set Clear Goals: Whether it’s an emergency fund, a vacation, or a retirement plan, having a clear purpose for your savings can keep you motivated. Break larger goals into smaller milestones to track your progress.
6. Cut Unnecessary Expenses: Evaluate your spending habits and eliminate expenses that don’t bring value to your life. For instance, cooking at home instead of eating out can save a considerable amount over time.
7. Increase Your Income: Consider taking on a side hustle, freelancing, or pursuing additional certifications to boost your earning potential. Additional income can accelerate your savings goals.

While these statistics provide a snapshot of the average savings by age, it’s important to remember that financial success is a personal journey. Your savings goals should reflect your unique circumstances, and progress should be celebrated at every stage.

Regardless of where you stand today, the most important step is the next one you take. By adopting smart saving habits and staying committed to your goals, you can build a secure financial future for yourself and your loved ones. Remember, it’s not about perfection—it’s about progress.