Average savings by age in the UK: How much should you be saving?

It’s a well-known fact that rainy day savings are important. These rainy days can be anything from financial and medical emergencies to weddings, university fees, or moving house. But, despite the importance of having something tucked away being well-known, are people in the UK ready for that rainy day? The average savings by age statistics seem to indicate that they are not.

Unsurprisingly, people’s attitude toward having reserves differs vastly depending on their age and financial situation. 

So, a large number of people in the UK are not inclined towards setting money aside and take it perhaps less seriously than they should, so in this Moneyfarm blog, we look at how much you should be saving each month to get you back on track.

Experts advise individuals to save at least three months’ worth of living expenses – the majority of people in the UK are not at this recommended level. There can be multiple reasons for not saving enough, but insufficient earnings are consistently among the top reasons.

Overall, the data on average savings in the UK is worrisome. In the UK, 16% of Brits have nothing set aside, while over 39% of people do not have enough put away to support themselves for a month in the absence of income. The total number of adult ISAs has been rising in recent years, while the number of people with no reserves at all is increasing. Although the number of junior ISAs is going up, the average amount invested in them is plummeting. Bank balances are dwindling, and so are the average UK savings figures.

If you want to put your money to better use, a stocks and shares ISA is the best way to protect cash from inflation and grow your money for the future. With Moneyfarm, an account gives you access to expert advice, a wealth of investment expertise, round-the-clock control and a portfolio that’s built to suit your goals. To check out your options, click the button below.

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Average savings by age in the UK

Based on the Office of National Statistics data, the average amount people have set aside predictably goes up as they get older. In 2020, the average British adult had around £6,757 saved. This number has increased as of 2025.

According to research from Finder, the average person in the UK has 17,773 in reserve as of 2023. Younger people have less set aside for many reasons, like student loans, low salaries and high expenses, while the average amount in savings increases as people get closer to their retirement age.

How about the UK average savings by age figures in 2025?

The average retirement savings by age in the UK are shown below. The data is courtesy of Finder.com.

Comparison of saving habits across generations: Baby Boomers, Gen X, Millennials, Gen Z

According to Finder’s 2025 report, the proportion of UK adults with no savings remains concerning across all age groups:

High housing costs, stubborn inflation and weak real-wage growth continue to chip away at the financial resilience of Millennials and Gen Z, while many Gen Xers are draining their rainy-day funds to keep up with rising mortgages and household bills (a trend echoed in the FCA’s January 2024 re-contact survey).

Baby Boomers and – to a lesser extent – Gen X are the only cohorts to have strengthened their safety nets. Boomers benefit from paid-off mortgages, stable pension income and a generally cautious approach to money, while Gen X has tightened its belt and made greater use of budgeting apps and automatic transfers.

Average savings by generation (2025)

As regards the average savings by age in the UK in terms of habits, baby boomers and the silent generation are more likely to invest for retirement, own their own homes, and have higher incomes. Gen X is more likely to save for shorter-term goals, such as holidays and weddings. Millennials are more likely to use technology and AI to manage their finances and save for specific goals, such as children’s education or a home purchase.

Currently, Gen X and Millennials are facing a few financial challenges that are altering how much they can set aside. These challenges include things such as student debt and rising house prices and cost of living. At the same time, Gen Z is more open to new financial products and services, such as cryptocurrency, and has just started developing a saving habit.

Average savings by income in the UK

Income is another critical metric that determines the average saved by age figure, in the UK. There is, understandably, a direct correlation between income and savings. People with higher incomes have more disposable cash and can save more than those with lower incomes.

However, despite their incomes, how much money people eventually save depends on several factors and their attitude towards setting money aside in general. Also, people with high incomes tend to have high expenses and need higher reserves for their retirement.

On average, low-income families in the UK have £95 set aside, while high-income families have an average of £62,885. The gap between low-income and high-income households has increased continuously and has become even more expansive thanks to the ongoing coronavirus pandemic and the current cost of living crisis.

How much should you save each month?

The Pensions & Lifetime Savings Association (PLSA) upped its Moderate Retirement Living Standard to £31,300 a year for a single person (and £43,100 for a couple) in 2024. A Comfortable lifestyle now needs £43,100 (single) or £59,000 (couple).​

Assuming today’s full State Pension will cover just over £11,500 a year, a single saver aiming for the Moderate lifestyle still needs c. £20,000 of private income. In very rough terms that means accumulating £350,000-£400,000 in pension and investment assets by retirement. Spread over a 35-year career, that’s about £425-£475 a month (after employer contributions and investment growth).

The average Brit is some way away from the expected amount they should have set aside and needs to save a lot more to reach the recommended levels of personal reserves in the UK. Saving regularly is the key.

How much should you save at 30

The average savings by age 30 should be £51,434. However, the general rule states that the amount you should have set aside by this age should be equivalent to your annual income. 

How much should you save at 40

The average savings by age goes up to £124,911 by the age of 40. The general rule for the average saved by age 40 is to have three times your pre retirement income.

How much should you save at 50 and 60

The average reserves you should have reached by age goes up to £198,390 by the age of 50, with average savings by age 60 in the UK at around £270,100. Furthermore, the average reserves in your account by age 50 and 60 should be six and eight times your pre retirement income, respectively.

Have you ever considered investing?

For many people, the idea of  investing their hard-earned money can be daunting. Cash has always felt “safe”, sowhy risk opening your wealth up to the markets?Well, the truth is that cash isn’t the safe haven it once was.

• The Bank of England has already cut its base rate to 4.5 % (February 2025) and policy-makers hint that further trims could follow later in the year.​Bank of England
• Headline CPI inflation is still running at 2.8 % (February 2025), which means the real (inflation-adjusted) return on most easy-access accounts remains close to—or below—zero once tax is considered.​Office for National Statistics

So while cash rates are far better than a few years ago, they’re still struggling to keep pace with prices. That’s why more savers are taking the next step:

• Stocks-and-shares ISA openings jumped 22 % year-on-year during the latest ISA season, with platforms reporting a surge in transfers out of cash ISAs.​Financial Times
• HMRC data confirm the longer-term drift: nearly 60 % of the total ISA pot is now held in investments rather than cash.​GOV.UK

In short, cash is great for a three-to-six-month emergency fund, but anything beyond that risks being eroded by inflation and lower interest rates. A well-diversified stocks and shares ISA lets your money work harder while keeping any gains sheltered from Capital Gains Tax and dividend tax.

For a lot of people, the idea of investing their hard-earned money can be daunting. When cash is traditionally such a safe option, why risk opening your wealth up to the markets? Well, the truth is that cash isn’t the safe haven it once was.

To get started with an investment portfolio that’s designed around your long-term goals, follow the button below.

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Average retirement income in the UK

The amount of money required to live comfortably in retirement varies widely from person to person, depending on their living expenses and where they want to retire. Most British citizens believe that an annual income of between £10,200 and £41,900 is likely to sustain a convenient and comfortable retirement.

Beyond that, anything extra would be considered a luxury. However, you probably won’t find anyone complaining about having more than enough money for retirement because financial situations might change over time.

Savings statistics in the UK: Average savings by gender and region

The savings picture still varies sharply depending on who you are and where you live.

Gender gap

• Men now hold an average of £20,810 in savings.
• Women hold £11,432 – around 45 % less. finder.com

The gap mirrors the gender-pay divide and the fact that women are more likely to take career breaks or work part-time, leaving less spare cash to set aside.

Regional divide

Fresh survey data show the spread between the UK’s best and worst-off savers is wider than ever:

Why such a gulf? High-pay sectors concentrate in London, while house-price growth there has inflated homeowners’ cash buffers. By contrast, lower wages and fewer high-value jobs leave savers in the East Midlands and Northern Ireland with far smaller cushions.

Sources: Finder UK Savings Report 2025; Raisin UK “Average savings in the UK” survey 2025.

Average investments in the UK

Average investments in the UK look very different in 2025 from even a couple of years ago.

During the 2022/23 tax year Britons subscribed to 12.4 million adult ISA accounts, up from 11.8 million the year before, and poured £71.6 billion into them. Almost all of that extra money went into cash products, with cash-ISA subscriptions jumping by roughly a third, while contributions to stocks-and-shares ISAs slipped by just over £6 billion. Even so, investors still hold the bulk of their long-term ISA wealth in the markets: according to Gov UK in April 2023 the total ISA pot was worth £726 billion, and close to 60 per cent of that, around £430 billion, sat in stocks-and-shares ISAs.​

That dominance reflects how much bigger individual investment pots have become. In 2008 the average payment into a stocks-and-shares ISA was a little over £3,200; by 2022/23 the typical investor was paying in just under £10,000, meaning the average subscription has effectively tripled in fifteen years.

Cash, of course, has enjoyed a renaissance: easy-access rates north of four per cent lured savers back during 2023.

Once you have a three-to-six-month emergency fund, a well-diversified stocks and shares ISA still offers the best long-term chance of beating inflation—and of closing the savings gap you will need in later life. For shorter-term goals, or if you simply want somewhere to park that emergency fund, a cash ISA remains a popular, tax-efficient option.

Stocks and shares ISAs can be opened with a range of risk levels to cater for different investors’ attitudes. If you want your cash to grow slowly but steadily over the years, as you try to reach the average savings by age 60 in the UK, a low-risk portfolio could be the most suitable. Conversely, those who want their cash to grow more but are willing to accept a greater degree of risk can take out higher-risk portfolios. However, most investors will fall somewhere in the middle of this scale.

Factors that affect average savings

The average savings in any country are created by a number of contributing factors. Some factors influence savings at the macro level, while many others have an impact on an individual level. On a larger scale, average savings are impacted by the economic growth of a nation and the prevalent interest rates.

While higher interest rates make savings more attractive and increase the average amount saved, higher economic growth tends to increase spending and reduce savings. Additionally, high levels of inflation may discourage cash reserves but increase the appeal of assets.

From an individual perspective, average savings are heavily influenced by cultural trends. Some cultures have a tendency for higher saving, while others have a spending culture. Levels of income and average age play a significant role in determining the average amount of money set aside per country

The average amounts of reserves are less for younger people, and they steadily increase until the age of 50-60. They then go down post-retirement as the income typically stops altogether. Similarly, higher income levels also enable higher savings when compared to lower-income households.

Impact of economic downturns in the UK on savings?

The lingering cost-of-living squeeze continues to reshape the way Britons save – or, more often, don’t. The FCA’s January 2024 Financial Lives re-contact survey found that 14.6 million adults (28 %) said they were “not coping” or were finding it difficult to cope financially, while 7.4 million (14 %) felt heavily burdened by their bills and credit commitments.​

To plug day-to-day gaps, 44 % of adults stopped or cut back on saving or investing, and 23 % raided existing savings during the 12 months to January 2024.​FCA Unsurprisingly, the hit has been heaviest for lower-income households, whose median cash buffer is barely £100, compared with more than £60,000 for the highest-income fifth.

Higher borrowing costs have added to the pressure. The Bank of England has begun trimming rates, but even after February 2025’s cut to 4.5 %, mortgages and consumer credit are far dearer than in the late-2010s.​ That feeds directly into household budgets: mortgage-interest payments jumped by 36.1 % in the year to March 2024, according to the ONS Household Costs Indices, pushing up the living-cost inflation rate for mortgagor households.

Renters are feeling the strain too. Official ONS figures show private rents rose by 6.2 % in the 12 months to January 2024, the joint-highest annual increase since the series began in 2016.​ With both housing tenures facing larger monthly outgoings, many households have little choice but to save less or dip into whatever reserves they still have.

Inflation is easing, but wages have yet to pull convincingly ahead of core living-cost indices, so the average family’s ability to rebuild a rainy-day fund will remain under pressure through 2025 – especially for renters, new mortgage holders and those in lower-income brackets.

Quick ways to increase your savings

One look at the data around average savings by age in the UK shows that the situation is problematic. Far more than an acceptable number of people in the UK have no reserves at all, while many have insufficient to protect them in the event of a loss of income. Therefore, the need for the average person to consider setting money aside for rainy days has never been greater.

The smartest way to save is ‘saving before spending’. To get a substantial average savings by age 60 in the UK means putting money into savings immediately after payday and spending the remaining amount accordingly. Current technology also means people can automate the saving process in its entirety. Various smartphone apps are equipped to analyse individuals’ income and spending habits, decide on the appropriate amount of reserves, and deduct the decided amount automatically every month.

Another smart way to save and have adequate average savings by age 60 in the UK is to make setting money aside as secure as possible while also making it relatively inaccessible, so that you don’t dip into them as soon as you fall short of money or give in to making an impulse purchase. It is important to follow the quick methods to increase your reserves to prepare you for emergencies and enter your retirement with a sufficient amount of savings to maintain a comfortable lifestyle.

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