HomeResources20+ Eye-Opening UK Savings Statistics for 2022

20+ Eye-Opening UK Savings Statistics for 2022

Last updated 28th Nov 2022
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If you are worried about not saving enough or that inflation might take a massive chunk of your money, it’s best to look at how others are doing it. For instance, the average savings in Britain increased significantly during the pandemic but are expected to dwindle by 2024.

So, should you bury the money in the garden or open a savings account? What’s the best way to gear up for retirement?

The following savings statistics for the UK should point you in the right direction and solve any dilemmas. Let’s check them out.

Top 10 Savings Statistics for the UK

  • 28% of UK households accumulated additional savings during the pandemic.

  • During lockdowns in 2020/2021, people in Britain weekly saved an average of £99.45.

  • 9% of people in Britain have no savings.

  • In 2020, the average savings in the UK were £6,757 per person.

  • The median gross savings per household in the UK are £12,500.

  • Over half of UK employees contribute between 3% and 5% to their pension plan.

  • In 2021, the savings rate in UK households was 10.44%.

  • The median monthly savings for UK households amount to £180.

  • In 2019, 60% of adults in the UK made adequate retirement savings.

  • The average man in the UK has 32% more money in savings than the average woman.

The Latest UK Savings Statistics & Facts

During lockdowns in 2020/2021, people in Britain weekly saved an average of £99.45.

The COVID-19 pandemic affected British people in various ways, and one of the side effects of working from home and spending less on social activities was increased savings. For instance, remote workers in Britain saved £44.78 on average by not commuting.

Overall, each week of lockdown added a jaw-dropping £4.6 billion in collective savings, making the potential total for a year of lockdowns around £130 billion.

(LoanTube)

In 2020, the average savings in the UK were £6,757 per person.

According to data from 2020, most Brits had over £6,000 saved, but the same studies revealed that a third of people in the UK had less than £600 in savings. Moreover, 41% don’t have sufficient money saved to live for one month without income.

On the other hand, financial advisors and experts recommend having enough savings to cover three months of expenses. Therefore, many Brits are below the recommended savings level.

(Moneyfarm)

28% of UK households accumulated additional savings during the pandemic.

According to household savings statistics, almost a third of families increased their pension pot in 2020, even though 20% of surveyed admit to depleting their savings. Likewise, 36% of retirees in the UK saved more than in previous years.

Income-wise, 42% of high-earning households saved more due to lockdowns, compared to 22% of low-income families. As expected, 70% of UK households planned to keep their savings in their bank accounts.

(Bank of England)

After the pandemic, 10.3% of households in the UK planned to invest extra savings in stocks.

Planning to keep the savings in a bank account is a safe bet for most people, but UK savings statistics also reveal that some Brits plan to invest the money. The percentage might be minor, but it shows optimism and hope for a recovering economy.

In addition, 9.5% of people in the UK had no investment plans except for spending everything on leisure, food, and electronics.

(Statista)

Britons signed up for 12 million adult ISAs between 2020 and 2021.

Despite the increased savings during the pandemic, most Brits did not rush to open new Individual Savings Accounts. Namely, the number of new adult ISAs in 2020/2021 decreased by one million compared to the previous reference period (13 million in 2019/2020).

Statistics on savings also show that new subscriptions for cash ISAs decreased by 1.6 million compared to 2019/2020.

(GOV.UK)

National Savings Statistics

9% of people in Britain have no savings.

Most Brits put money aside for rainy days or retirement, but a significant portion of the population is not inclined towards savings. Namely, studies show that one in three Brits has less than £1,500 in savings.

A more worrying fact is that more than 40% of people in the UK do not have enough saved money to handle one month of expenses without income.

(Moneyfarm)

In 2018, 2.3 million households in the UK had a personal person.

The national statistics on saving money showed that nearly a fifth of UK households in 2018 had whole life insurance (4.8 million out of 26.5 million). Over two million families had personal pension schemes, while only 0.6 had term life assurance.

Income protection was a less popular financial instrument, given that only 0.2 households in the UK opted for income protection in 2018.

(Statista)

On average, savers in London set aside 11% of their annual income.

Londoners lead the charts regarding personal savings, with the average yearly amount they save equaling £3,962. Of course, the average savings in the UK vary by region, with the disparity increasing continuously.

For example, the average yearly savings in the North East are £1,400 per person (6% of annual income). Likewise, statistics show that savers in South West and East of England set aside 9% of their yearly income.

(Aldermore)

50% of Londoners feel they save enough for a stable financial future.

Despite the rising costs of living in a metropolis, half of Londoners believe their savings will provide a comfortable retirement.

On the other hand, 36% of savers in the East Midlands and 37% in Yorkshire feel like saving enough for a stable financial future.

(Aldermore)

Retirement Savings Statistics

In 2019, 60% of adults in the UK made adequate retirement savings.

Determining the amount you should have in your pension pot for a comfortable retirement is tricky because of varying lifestyles, habits, and physio-social conditions. Yet, a long-term study revealed that the percentage of people who reached adequate savings in the UK is rising.

Notably, 54% of the UK population in 2009 reached the goal, with the percentage growing to 60% by 2019.

(Yorkshire Building Society)

In 2018, 40% of UK adults aged 22 to 29 saved adequately for retirement.

As expected, the UK average savings by age data show that the senior population saves much more than the younger one. More precisely, two-thirds of Brits (62%) aged between 50 and 59 years were saving adequately for retirement in 2018.

The older Brits get, the more they prioritise saving for retirement. Nonetheless, experts recommend that people of any age should set aside a minimum of 12% of their income as retirement savings.

(Statista)

Over half of UK employees contribute between 3% and 5% to their pension plan.

As we said, pension contributions vary across age groups, with the older population typically saving more on average. However, statistics on retirement savings reveal that over 50% of employed Brits contribute 3%-5% to their pension scheme.

The Office of National Statistics (ONS) also reveals that only 14% of people in Britain across age groups contribute over 7% to their pension. Thus, the average Briton falls below the recommended pension contributions.

(Occam Investing)

19% of UK adults have less than £100 in their savings accounts.

The growing inflation and rising living costs affect pension plans and retirement contributions across the UK, and almost a fifth of Brits have less than a hundred pounds saved.

In addition, a recent YBS study revealed that 21% of Brits are not saving for retirement, compared to 12% in 2019.

(Yorkshire Building Society)

UK Households Savings Statistics

The average household in the UK has £76,301 in savings.

The term “savings” can illustrate the overall financial wealth. So, the numbers released by the Office for National Statistics reflect funds in various savings accounts, ISAs, bonds, shares, and other instruments.

For instance, the median amount in savings for households with savings accounts is £5,500, while the median amount for cash ISAs is £9,200.

(NimbleFins)

The median gross savings per household in the UK are £12,500.

As expected, the results for median and average UK household savings differ significantly. High-income earners save more than the majority, skewing the picture for the average gross savings.

On the other hand, the median amount represents the middle ground. Two years ago, the median gross savings for UK households amounted to £11,000.

(NimbleFins)

In 2021, the savings rate in UK households was 10.44%.

On average, UK families set aside approximately a tenth of their disposable income. Of course, the savings ratio, also known as the ratio, fluctuates depending on socio-economic situations and people’s attitudes toward savings.

For instance, the UK savings ratio spiked during the COVID-19 pandemic, reaching nearly 14% in the UK in 2020. In 2018, the savings rate in the UK dropped to its lowest recorded level (4.76%).

(Statista)

The median monthly savings for UK households amount to £180.

Over the past ten years, the savings ratio for households in the United Kingdom has averaged 8.7%. Therefore, the typical family saves approximately £180 a month. Again, average monthly savings paint a skewed image, showing that UK households save £450 a month.

The figures for average UK savings are higher than the median because of the percentage of households with high savings rates (around £1,817 a month).

(NimbleFins)

A typical household in the UK saves £2,160 a year.

The spikes in savings rates like the one from 2020 are anomalies, not representing the actual situation in the real world. Therefore, financial experts turn to median and average figures, extrapolating data from long-term observations and statistical analysis.

The average yearly savings for UK households amount to £5,403, compared to £2,160 per year as the median amount. Thus, the average UK family savings will paint a more optimistic picture as a reference point.

(NimbleFins)

The savings rate for UK households is forecasted to fall below 5% by 2024.

Families across the UK are expected to reduce their average savings in the upcoming years, causing a significant drop in the national savings rate. Namely, the ratio could decrease by 0.5 points, starting in 2022.

More precisely, the forecasted rate for 2024 is 4.25%, a considerable decrease from 10.75% in 2021, not to mention the unprecedented spike during the pandemic.

(Statista)

Savings Statistics by Age and Gender

The average savings for UK adults aged 25-34 are between £500 and £5,000.

Age groups across the UK have varying incomes, leading to different data on average savings and net worth.

Then again, young adults between 25 and 34 have had the shortest time accumulating savings, which is why their pension pots are the lowest compared to other age groups. In most cases, those under 25 are students or living with their parents, with relatively little personal savings.

(Occam Investing)

The average savings for adults in the UK aged 35-44 are between £5,000 and £12,500.

The average savings of a 30-year-old UK adult don’t exceed £5,000, illustrating a poor attitude toward saving in early adulthood.

However, according to the Office of National Statistics, the situation improves as we focus on older generations, with middle-aged Brits setting aside £5,000 to £12,500.

(Occam Investing)

The average savings for UK adults aged 65+ are between £25,000 and £50,000.

Given the years or decades of employment, it’s not surprising that the senior population in the UK accumulated the most savings. Yet, the average amounts in savings accounts, ISAs, and other financial assets are far below the recommended levels for a comfortable retirement.

Namely, the average savings by age in the UK for 2022 reveal that Brits aged 65 and older have £25,000-50,000 in savings, with their average net worth ranging from £500,000 and £1,000,000.

(Occam Investing)

The average man in the UK has 32% more money in savings than the average woman.

The gender gap in financial aspects across the UK decreased in the last few decades, but there’s still a gaping discrepancy in savings between men and women.

For instance, data shows that the average woman in Britain has ‘only’ £8,038 in savings, compared to £24,880 for the average man. In addition, only 38% of women feel their current wage allows them to meet monthly savings goals (vs 51% of men).

(Wealth and Finance)

FAQ

How much does the average person save a month in the UK?

Various factors affect a person’s attitude towards savings, including income level and employment type. Yet, retirement data reveals that the average person in the UK saves around £105 per month. Of course, the savings between high-earners and low-income populations differ significantly.

On average, Britons save approximately 8.2% of their monthly income, while the average savings per household are around £450 a month.

(Moneyfarm, NimbleFins)

How much savings does the average person have in the UK?

Studies from 2020 revealed that the average Brit had £6,757 in savings, even though a third of people in Britain have less than £600 saved.

On the other hand, data from NimbleFins says that the average person in the UK has around £12,500 in savings, including various financial instruments like ISAs, shares, stocks, bonds, trusts, and other assets.

(NimbleFins, Moneyfinder)

What percentage of people in the UK have savings?

Although savings in the UK skyrocketed during the COVID-19 pandemic, some Britons don’t have savings at all. Yet, statistics show that 91% of people in the UK put away funds for retirement or emergencies.

In other words, most Brits have a pension pot or a retirement plan. In addition, 20% of Brits increased their monthly savings during the pandemic.

(LoanTube, YBS)

How many Brits have no savings?

Most Brits understand the importance of planning for the future and securing a comfortable retirement, but data shows that approximately 9% of people in Britain don’t have any money saved. Similar studies suggest an even more worrisome trend, revealing that around 15% of Brits have no savings.

Likewise, statistics reveal that 40.93% of Brits don’t have enough money saved to live for a month.

(Finder, Moneyfarm)

How much savings should I have at 40 in the UK?

Saving habits vary by age and gender, and the general rule is that the older population saves more than the young ones. For instance, an average 40-year-old in the UK should have saved up to £124,911 through various financial instruments and saving methods.

Another rule of thumb for people in Britain is that the average savings by age 40 should be three times your pre-retirement income.

(Moneyfarm)

Is saving £500 a month good in the UK?

Given that the average Brit saves around 8.21% of their monthly income, a £500 addition to your retirement plan would be more than a decent amount.

Moreover, studies show that, on average, people in Britain save £105.43 a month. Therefore, putting £500 away for rainy days would secure a comfortable retirement in part of the UK.

(Moneyfarm)

How much should you have in savings in the UK?

People with different lifestyles will have varying ideas of how much money one should have in an emergency fund or a savings account. However, experts recommend that a single-person household have £19,000 in savings for a comfortable retirement.

In translation, yearly savings should amount to £7,300 to hit retirement with more than £266,000 in savings.

(Moneyfarm)

Conclusion

In general, Brits are inclined towards saving, but the current financial and social climate might affect these habits in the future. In addition, the growing inflation and the looming recession must worry anyone with pension schemes or retirement plans.

Nevertheless, saving statistics for the UK show that Brits did not lose faith in financial instruments and that the days of secret stashes or piggy banks are over. The growing number of ISAs and similar financial assets reveals a positive trend, despite the increasing number of Britons living paycheck to paycheck. In a way, we can only hope there’s a golden sky at the end of the storm and continue saving money the best way we can.

Sources:

Darko Radić

Darko Radić

Despite his BA in English, Darko’s interests slowly strayed away from analyzing Shakespeare and re-reading the classics. Instead, he goes above and beyond to build his online writing portfolio, covering everything from SEO and digital marketing to finance and crypto. Effortlessly, he dives into reports and research papers to extract the juiciest parts and make the reader’s life easier. When not writing, Darko typically explores mountain trails with his loyal Belgian Malinois.