The UK fell back into recession at the end of 2023, and it feels like everyone is either talking or worrying about money. As we navigate this economic downturn, many people will be turning to their nest eggs and emergency funds for help.
But how much money do Brits have in savings? And are you falling behind? In this blog, we dive into the average UK savings by age according to recent research from Finder.
How much does the average person have in savings?
The average British person has £11,185 saved, but almost half of UK adults have less than £1,000 in savings. Let's dive into the average savings by age for a more detailed perspective.
Savings in your 20s
The average savings amount for 20-year-olds is £3,636. Younger people are beginning their financial journey, often with lower disposable income and potentially grappling with student loans or the initial stages of their careers. Despite these challenges, establishing a savings habit in your 20s sets you in the right direction for long-term financial wealth. It is essential to start saving for a rainy day or unexpected expenses.
Building in your 30s
By the 30s, individuals are expected to build upon their savings, with an average amount of £3,748. This decade is pivotal for long-term financial planning, often marked by significant life milestones such as getting a mortgage or starting a family. With potentially higher disposable income and increased responsibilities, 30-year-olds must balance their immediate needs with their long-term financial goals.
Fortifying in your 40s
The 40s are critical for fortifying one's savings, with the average amount in this age group at £5,714. This period often involves peak earning years, offering an opportunity to increase one's savings rate significantly. However, it is also a time when expenses can mount. Focusing on effective money management and financial planning is essential to ensure a stable future.
Preparing in your 50s
Preparation for retirement becomes more pressing in the 50s, with an average savings of £9,402. This age group must maximise their savings to ensure a comfortable retirement, taking advantage of pension schemes and possibly higher average savings rates. Financial planning during this decade is crucial to ensure that the golden years are truly golden, with a solid foundation of net financial wealth.
Adjusting in your 60s
As individuals enter their 60s, with an average savings of £18,245, the focus shifts to adjusting their financial plans for retirement. This age group typically has the highest average savings, reflecting a lifetime of financial discipline and planning. It is a time to assess one's financial situation and make necessary adjustments to ensure that savings can support a comfortable and secure retirement.
The average savings amount by age in the UK varies greatly
The amount of money saved varies across these age groups, from younger generations to the silent generation. It depends on many factors, including income, location and the gender pay gap. Generation X and Gen Z, along with baby boomers, face unique financial challenges and opportunities, which impact their average amount of savings in the long term.
Whether you are the lowest or the highest earner, you must navigate your own financial path, considering your age group, regional economic conditions and broader economic factors like interest rates. Effective financial planning, awareness of savings benchmarks and a clear understanding of your own financial goals are essential for building and maintaining wealth as you get older.
