Who Has the Highest Average Savings in the UK?
Savings are a key aspect of financial well-being. They act as a safeguard against unexpected events and can give you the freedom and confidence to make necessary life changes. But there are clear differences in the average savings across different groups of people in the UK.
Looking at UK saving statistics across various generations, regions, ethnicities, and occupations tells an interesting story. And seeing where you fit in the scheme of things can help give perspective on your saving habits and consider if there are changes you can make to safeguard your savings.
Key Stats for UK Average Savings
- The overall average for personal savings in the UK is £17,773.
- Half of people in the UK have less than £1,000 in savings.
- 23% of people have no savings at all.
- The highest earners have an average of 12 times more savings than the lowest earners in the UK.
- The average savings in a UK cash ISA was £4,330 in 2021-2022.
Average Savings Across UK Demographics
What generation has the highest average savings in the UK?
With savings, time really does equal money. So understandably, older people who have held savings for longer have higher average savings than younger people. However, when considered across each generation, the average savings still reflect drastic differences.
|11 – 26
|1997 – 2012
|27 – 42
|1981 – 1996
|43 – 58
|1965 – 1980
|59 – 77
|1946 – 1964
|The Silent Generation
|78 – 94
|1928 – 1945
The generational increase between the three youngest generations stays fairly consistent. With an increase of 118-141% between Gen Z, Millennials and Gen X. But this leaps up to a 223% increase between Gen X and Baby Boomers. This Gen X savings gap is more apparent in the fact that over a third of these 43 – 58 year olds reported having no savings at all. This was higher than in any other generation, including Gen Z.
What region has the highest average savings in the UK?
Geographical location also plays a role in determining average savings, with significant variations across UK regions.
|East of England
|Yorkshire and the Humber
East of England, the region with the highest average savings holds nearly three times more savings than the lowest region, West Midlands. This accounts for an average difference of £18,873 per person.
What gender has the highest average savings in the UK?
Although research reports the differences in average savings for UK women and men, there is a clear omission of other genders from financial research.
- Overall average savings for women in the UK is £11,698
- Overall average savings for men in the UK is £23,951
Women have consistently lower average savings than men across every age and generational grouping. This discrepancy starts early and escalates over time, accelerated by factors like accumulating interest, saving habits, and broader economic and social disparities like the gender pay gap.
Men under 20 save an average of 25% more than women in their age group. The result of this is that by retirement age, men over 65 have accumulated 50% more savings than women in the UK. This means men have an average of £130,000 more to enjoy in their retirement years.
Which ethnic group has the highest average savings in the UK?
Research from ONS (Office for National Statistics) looks into the net financial wealth of different ethnicities in the UK. Net financial wealth is simply the value of any assets, including savings and investments, minus liabilities like credit card balances or debt. Here the household’s ethnicity was determined by the ethnicity of the person considered the head of each household.
Ethnicities with the highest median net financial wealth:
- Indian – £9,100
- White British – £8,900
- Chinese – £5,500
Ethnicities with the lowest median net financial wealth:
- Black African – £100
- Other unspecified ethnic groups – £500
- Black Caribbean – £600
These stats show big differences in financial wealth across different ethnic groups. The gap between the richest (Indian) and the poorest (Black African) groups is huge, with an average of £9,000 less for Black African-led households.
What occupation has the highest average savings in the UK?
The latest data from 2020 sheds light on the average savings across various occupations in the UK, highlighting notable differences in savings based on people’s professions.
Occupations with the highest UK average savings:
- Public administration and defence – £325,200
- Financial and insurance – £267,900
- Real estate – £267,500
- Information and communication is predicted to overtake real estate in the near future.
Occupations with the lowest UK average savings:
- Accommodation and food service – £26,100
- Wholesale and retail trade, repair of motor vehicles and motorcycles – £78,900
- Water supply, sewerage and waste management – £89,800
These could logically align with the salaries of the occupations, as without disposable income people are unlikely to be able to put savings aside. Occupations with irregular hours and job instability can also affect financial planning in the long term.
How does the average person save money in the UK?
Getting insight into the methods that the average person uses to save in the UK can give you some idea of people’s values when saving. Some people prioritise their money’s accessibility, while others focus on higher return methods.
|Percentage of UK Savings
|What is it?
|Accounts that pay interest on the amount you save
|Easy access to money
Low or no fees
|Interest rates can be low or below inflation
|Tax-free savings accounts
Offers a variety of saving options
|Annual saving limits
Lower interest than other methods
|Keep money in current account
|Everyday bank accounts
|Easy access to money
Offers debit cards and online banking
|Very low interest rates
|Premium bond savings account
|Accounts that buy bonds from the government
Earns money through prize draws rather than interest
|Prizes are tax-free
Backed by the government
|Your savings won’t grow unless you win
|Putting money into things like stocks, bonds, or property
|Higher return potential than other methods
|Can be risky
Money can be difficult to access
|Cash or moneybox
|Keeping money as cash
|Immediate access and complete control of your money
|Threat of loss, theft or fire
Doesn’t earn interest so devalues at inflation rate
Additionally, 15% of people have no savings at all. This has been exasperated by the UK cost of living crisis with over a third of people relying on their savings to get them through this financially difficult time.
55% of people also report reducing the amount they are putting towards their savings. So it is more important than ever that you make informed choices for your savings to get the best returns for you.
Data on the UK’s average saving stats reveals disparities across demographic savings and saving methods. These are numbers that you can factor into your savings strategies. Whether it’s choosing suitable savings accounts, exploring investment opportunities, or adopting better saving habits, every step taken today contributes to a more secure financial future.
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This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes