What PERCENTAGE OF PEOPLE HAVE MORE THAN £10,000 SAVED?

Are you like me, always seeing people who seemingly have all the money in the world online, questioning exactly how they have gotten so far ahead?

The truth is that only 16% of UK adults have more than £10,000 saved up, so what we are seeing littered around online is actually a wall set up to hide their bottomless pit of debt.

Saving money is a crucial part of building financial stability, but recent statistics reveal just how difficult it is for many to reach the £10,000 savings milestone. In the UK, the percentage of people who have saved £10,000 or more varies significantly depending on age and life stage. Some age groups are ahead of the curve, while others are struggling to make significant headway.

• 18-24 years: Only 3.8% of individuals in this age group have more than £10,000 saved. This is not surprising, given that most young adults are either just starting their careers or still in education. At this stage, it's typical to have minimal savings as student loans, entry-level salaries, and the high cost of living weigh heavily on their finances. For many, the £10,000 mark is a far-off goal rather than an immediate reality.
• 25-34 years: This group sees a slight increase, with 8.6% having more than £10,000 saved. By this age, many people are more settled in their careers, potentially buying their first homes or starting families. While some have managed to save up a solid amount, the cost of living, housing, and raising children often means that many still struggle to build a large savings buffer.
• 35-44 years: The percentage rises to 12.4%, as individuals in this age range are often more financially established. With more disposable income and the ability to invest, many are starting to build long-term savings, including retirement funds. However, life expenses like mortgages, schooling, and family care can still limit how much is actually saved.
• 45-54 years: 15.5% of people in this demographic have more than £10,000 saved. At this stage, many are focused on retirement planning, and while some have been able to accumulate a significant amount, others may still feel the strain of financial obligations like mortgages, tuition, or caregiving for elderly relatives.
• 55-73 years: This age group sees a notable increase, with 27.5% having more than £10,000 in savings. Many people in their late 50s and 60s are preparing for retirement and may have accumulated wealth over the years, either through property, pensions, or investments. However, with retirement looming, many are now more focused on maintaining their savings than increasing them further.
• 74+ years: The most impressive statistic of all, 44.6% of individuals aged 74 and older have saved more than £10,000. At this stage, many have received inheritances, cashed in pensions, or benefited from a lifetime of financial planning. Having reached retirement, many seniors focus on preserving their wealth for future generations or enjoying their golden years.

While some age groups may have accumulated significant savings, a troubling number of people still have little to nothing saved. According to the same statistics, 46% of the population has £1,000 or less in savings, and 16% of UK adults have no savings at all.

This reality raises an important question: Why are so many people unable to save substantial amounts, even after years of work? The answer lies in a combination of factors, including rising living costs, stagnant wages, increasing debt, and a lack of financial literacy.

Having £10,000 saved provides a crucial safety net. Whether it's for an emergency, a home purchase, or a retirement fund, this amount can help individuals weather unexpected expenses without falling into debt. For those closer to retirement, a £10,000 cushion can provide peace of mind and allow for a more comfortable lifestyle without financial stress.

If you're part of the 84% of people who don't have £10,000 saved, it's never too late to start building your savings. Here are some practical steps:

1. Start Small, but Start: You don’t need to save £10,000 overnight. Set realistic, achievable goals, and break down the bigger goal into smaller, manageable steps. Even saving £5 a day adds up over time.
2. Create a Budget: Track your income and expenses to identify areas where you can cut back. Redirect any excess funds into savings.
3. Automate Savings: Set up an automatic transfer to a 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.
5. Emergency Fund First: Focus on building an emergency fund before tackling larger savings goals. Having a cushion for unexpected expenses can prevent you from dipping into your savings for emergencies.

The statistics on savings across different age groups in the UK highlight a crucial gap. While some are doing well and building their wealth, others are falling behind due to rising costs and other financial challenges. Regardless of where you stand on the savings scale, it’s never too late to start planning and saving for your future. Taking even small steps today can lead to significant rewards tomorrow.

By understanding these numbers and taking control of your finances, you can join the growing number of people who are achieving financial security, one savings milestone at a time.