What are the average savings by age in the UK?
In the UK, about 30% of individuals don't have savings, emphasizing the critical need to save for emergencies and retirement. Various methods exist to start or enhance saving practices, and seeking advice from a financial advisor is recommended for effective saving strategies.
The Importance of Saving Money
Saving money is crucial, not only for unforeseen expenses like medical emergencies, job loss, or educational costs but also for retirement planning.
Average Savings by Age in the UK
A 2023 study by Finder revealed that the average savings amount for British adults is £17,773, though this varies significantly across different age groups. Factors such as income level, saving habits, and life stage impact these averages. Here's a breakdown:
Under 25: £2,533 with an average annual income of £30,316
25–34: £4,775 with an average annual income of £37,544
35–44: £6,751 with an average annual income of £40,040
45–54: £14,591 with an average annual income of £37,804
Above 55: £35,607 with an average annual income of £33,852
Factors Influencing Savings
Savings are influenced by income, with higher earners generally able to save more. Attitudes towards saving and individual saving habits also play significant roles.
Recommended Savings Goals
By age 30: Aim to have £51,434 or equivalent to your annual income.
By age 40: Target savings of £124,911 or three times your pre-retirement income.
By age 50: You should have £198,390, or six times your pre-retirement income.
By age 60: The goal is £270,100, or eight times your pre-retirement income.
Retirement Savings
The desired retirement income in the UK ranges from £10,200 to £41,900 annually, translating to a retirement savings need of £204,000 to £838,000 over 20 years. Consulting with a financial adviser and leveraging employer contributions can help achieve these goals.
Saving Strategies
To improve savings, consider thorough budgeting, utilizing money management tools, securing savings to prevent impulsive use, prioritising saving over spending, and reviewing debts to lower monthly payments.
Book in for a 15 minute call to find out how you can put your savings to good use.
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Disclaimer: This blog post is for informational purposes and should not be considered financial advice. Always consult a financial adviser for personalised guidance.
