Wojciech
Diploma for Financial Advisers
Diploma in Accounting
Member of London Institute of Banking and Finance
Savings are an essential part of financial planning, but not everyone in the UK has a significant amount set aside. How much does an average UK person have in savings? According to recent statistics, the average savings per adult in the UK is around £9,000. However, this figure can vary widely depending on age, income, and personal circumstances. Many people have much less than this, with some struggling to save at all.
Breaking Down the Numbers
- No Savings: Research shows that about 16% of UK adults have no savings at all. This means millions of people are living paycheck to paycheck.
- Small Savings: Around 33% have less than £1,000 saved, which might not be enough to cover unexpected emergencies.
- Significant Savings: A smaller percentage of individuals have over £20,000 in savings, often due to higher income or disciplined budgeting.
Age and Savings
Younger adults tend to have less saved due to lower earnings and higher living costs. For example, those under 30 often have savings of under £1,000. In contrast, people over 50 are more likely to have substantial savings as they prepare for retirement.
Why Savings Matter
Having savings is crucial for financial stability. It can help cover unexpected costs like car repairs or medical bills. Experts often recommend having at least three to six months’ worth of living expenses saved for emergencies.
Tips to Grow Your Savings
- Set a Budget: Track your income and expenses to identify how much you can save each month.
- Automate Savings: Set up a direct debit to transfer money into a savings account regularly.
- Start Small: Even saving £10 a week can add up over time.
If you’re struggling to save or want advice on building your financial security, speaking to a financial guide can help. Small steps today can lead to big changes in the future.
Sources:
- Finder UK: Provides insights into average savings by age in the UK. Finder
- Forbes Advisor UK: Offers data on average savings by age in the UK. Forbes
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