Here's How Much The Average Briton Saves By Age — And It's Lower Than You Think

Personal finance coach Shads' analysis of a Finder study on how much Brits have in their savings accounts revealed that those belonging to the 18 to 24 age group have an average of £3,636 in savings, with almost 60% of them having saved less than £1,000. Only 3.8% in this age group have savings of over £10,000. In this age group, Forbes estimated that the average UK annual salary for those working 30 hours a week or more ranges from £24,440 to £32,292.

The average savings amount goes slightly higher to £3,748 for people aged between 25 and 34 years. Even in this age group, a staggering 59.2% have less than £1,000, and only 8.6% have more than £10,000. For people aged up to 29 years, the average annual wage is £32,292, and goes up to £39,988 for those at the higher end of the scale.

People in both these age groups up to 34 years are the most vulnerable to macroeconomic volatility, inflation, job losses, and debt, as well as financial mismanagement.

Going higher to those aged 35 and 44 years, the average savings are markedly higher at £5,714. However, over half of the people in this demographic still have under £1,000 in their bank accounts. Over 12% people have over £10,000 in savings. Brits aged up to 39 have an average annual salary of £39,988, while those older, up to 49 years of age, earn £42,796 on average.

People aged 45 and above, up to 54, have put away £9,402 in savings on average. Still, 44% have less than £1,000. The average annual salary for people in their 50s and up to 59 drops to £40,456 compared with those in their 40s. Forbes stated that wages peak in your late 30s and mid-40s, as the biggest career advancements generally occur in this period. Reasons for the decline in average pay after 50 include early retirement, working part-time, or poor health.

Although people in their 50s see a decline in annual wages, those in the 55-73 age group have average savings of £18,245, while 37.9% have less than £1,000 put away. From 60 onwards, the average annual earnings are below those of the 30-39 age group, but many people start receiving early or state pension.

People aged 74 and above have stashed away £36,940 on average, but still 17.8% continue to have under £1,000 in their bank accounts. According to 2023 ONS data, 94.4% of people aged 75 to 84 years were retired.

The average incomes and savings levels provide a reference point for our financial standing, but in reality, a significant portion of the population across all age groups has less than £1,000 in their bank accounts, which is concerning.

Hence, it is crucial to save in whatever capacity possible, no matter the age or the financial situation. However, it is advisable to avoid putting too much pressure on yourself to save hundreds of pounds right away; instead, saving a pound or two every day can make a considerable difference over time if done consistently.

'A simple trick is to save what you didn't spend,' said Matthew Sheeran, a savings expert at Money Wellness. 'If you get a discount on something, or you cancel a subscription, move that money straight into savings. You didn't miss it, so it's the perfect time to build your emergency fund.'