If you are unsure whether you’re saving enough, or even too much? In this guide, we examine the UK’s saving habits across different age groups, considering best practices for saving money and planning for retirement.
Through any working life, someone will at some stage want to save money. It might be for a special purchase, a big occasion, an urgent expense or simply to provide a financial safety net in the event of unemployment. Research in 2025 found that, on average, people across the UK held savings amounting to just over £16,000.
As a rule, younger people have access to less savings due to lower incomes, whilst older generations are more likely to own their homes. This is illustrated by the following data, based on non-ISA cash savings which comprises money held in an ordinary savings account, and outside tax-free wrappers. It shows that 57.1% of people aged 18 to 24 have under £1,000 in savings, with average £4,759 savings recorded across the age group. These figures contrast sharply with the other end of the demographic scale, where 26.9% of over 55s have under £1,000 in savings, with average £27,949 savings across the same age group.
There are clear reasons for this. Young people, often fresh from university, hold under £5,000 in non-ISA savings, given they are just starting out on adult life facing debts or high living costs whilst earning lower salaries. Average salaries tend to pick up in people’s 30s with increased savings accordingly. This explains why by the time someone reaches 55, their likely average savings will stand at approximately £28,000. Someone in this position is likely to have developed healthy saving habits over their lifetime, with a clear eye on a comfortable retirement.
It is worth noting that our spending and savings habits evolve significantly as we pass through life. Everyone is, of course, different and the amount people are able to save will be impacted by unique personal circumstances. Many factors will influence people’s ability to save, such as the cost of living, housing, or education and, ultimately, your disposable capital is determined by your net income.
You may be wondering how much to aim to save each month. The short answer is there is no uniform response to this question, but there is a useful rule to guide monthly budgeting, known as the 50/30/20 rule. This percentage-driven budgeting strategy allocates 50% of net income to essentials and 30% to desirables, leaving the remaining 20% to be saved in an account.
Broken down by age group, someone might aim to have accrued average savings of £51,434 by 30, £124,911 by 40, £198,390 by 50, and £270,100 by 60. These financial milestones reflect the different earning potential of people as they move through life, typically having less when they are young, career peaking in middle age, and seeing income drop off as retirement nears.
The latest data indicates that the average British savings pot is approximately £16,000 although it may be unwise to focus too hard on a figure with many caveats. The key question for you is how much your own unique circumstances allow you to set aside. Figures from the Office for National Statistics (ONS) show that in Q2 2025, the UK’s household saving ratio worked out at 10.7%. So, for every £1,000 in take-home pay, an average household could theoretically save around £107 a month.
Different factors will determine what people are able to save, such as mortgage payments, childcare costs and other family commitments, or reduced working hours. Other key elements include accommodation, transport, groceries and utilities, entertainment costs and medical expenses. There are regional and gender differentials to consider too. As such, the amount you should ideally save for retirement is based on strictly subjective criteria. That said, there are helpful guidelines you can follow which are useful tools for formulating a long-term strategy.
It is important to have a clear overview of your spending habits, reviewing the last three months’ worth of bank statements to see where you can make savings, and to identify efficient ways of managing any debts. This approach might help you to budget more effectively. There are numerous money management tools online. It is important to review your spending, and enlist professional financial guidance if required.
For tailored savings advice in Cheshire or Oswestry, call our specialist team at Hartey Wealth Management today.
