This page includes relevant UK savings statistics for 2023, such as UK savings market trends, how much people are saving, and reasons for saving, as well as average UK wealth statistics, factors affecting savings, and types of savings account.
Recent UK savings statistics for 2022 from the Bank of England (BoE) indicate that in the year up to October, people deposited £55.1 billion into UK banks and building societies. Approximately £3.6 billion of this was into National Savings and Investment (NS&I) accounts.
Savings are a crucial part of money management. Whether it’s putting money aside for a particular purchase in mind, or building up a rainy day pot for something unexpected, comparing savings accounts will ensure you select the one that is right for you.
Our research gathered the most recent UK savings statistics, to include topics such as people’s average savings in the UK, as well as demographic breakdown of UK savings market statistics, by age, gender, region, and job type.
We have also looked at savings statistics for the most popular savings accounts in the UK, outlined the various factors affecting people’s ability to save in 2023, and suggested what the future might hold for people’s financial security in the UK going forward.
The average person in the UK has £17,365 in their savings.
34% of adults had either no savings, or less than £1000, in a savings account.
61% of UK adults save money either every, or most, months.
Almost two-thirds (65%) of people believe they wouldn’t be able to last three months without borrowing money.
Savings accounts are the most popular savings method among UK adults, with over half (57%) using these to save money.
23% of savers don’t check the interest rate before opening an account.
Men have more savings on average than women across every age group.
A breakdown of monthly deposits in banks and building societies by UK households between 2018 and 2022
According to UK savings statistics for 2022, UK households deposited an additional £6.2 billion with banks and building societies in October, compared to £8.1 billion in September. The corresponding figures for June and May stood at £1.5 billion and £5.2 billion, respectively.
Flows into time deposits for October 2022 stood at £11.3 billion—the highest level on record since records began in December 1997.
Flows into interest-bearing accounts decreased to -£4.8 billion, and for non-interest bearing accounts to £2.3 billion (from £3 billion and £4.1 billion, respectively, in September). For June, this figure dropped to £0.3 billion—the lowest since April 2018, when deposits dropped to -£1.4 billion.
During October 2022, UK households deposited £0.2 billion into National Savings and Investment (NS&I) accounts, compared with £0.8 billion in September—the weakest level since January 2022, when figures stood at £0.1 billion. The corresponding figures for May and June were £0.3 billion and £0.4 billion respectively.
The combined net flow for both deposits and NS&I accounts in October 2022 stood at £6.4 billion (a decrease of £2.5 billion from September, yet still above the £1.1 billion average during the previous six months). For May 2022, this figure was £5.6 billion, but drastically dropped to £1.9 billion in June—a £3.7 billion decrease from the average monthly net flow during the 12-month, pre-pandemic period up to February 2020.
Research from the Building Societies Association (BSA) revealed that the average person has £17,365 in their savings, with one in seven (13%) revealing they had nothing.
As of Q3 2021, UK households saved an average of 8.3% of their post-tax income (including benefits), which was down from 12.4% in Q2 2021 and 22.8% in Q2 2020.
Between 2000 and 2015, the UK rate of savings fluctuated between 7-10%, with a recent, pre-Covid peak of 12% in Q1 2010.
According to savings stats from the FCA, up to a third (34%) of UK adults had either no savings, or less than £1,000 in a savings account. This equates to around 22.8 million people with very little or no money to fall back on. This figure was skewed towards the younger population, with under half (47%) of 18-24 year-olds having less than £1,000 in their savings account.
According to a survey by the Money and Pensions Service (MaPs), around a quarter of UK adults (11.5 million people) have less than £100 in their savings account, with one in six people having no savings at all.
According to recent credit card statistics, two in five people who use credit are anxious about how much they owe, with over a third worried about the number of different products they already have.
MaPs also found that four in every five people (81%) avoid discussing their finances with someone, with just over a fifth (21%) saying they are fearful of being judged by others. Conversely, just under a fifth (19%) were worried about being a burden to others, with 17% citing shame/embarrassment.
To align with the MaPs ‘Nation of Savers’ national goal, adults of working age (18-66) are categorised into different groups based on their financial security status, two of which are ‘The Struggling’ and ‘The Squeezed’.
|‘The Struggling’||‘The Squeezed’|
|Least financially resilient||High-risk category|
|Low income||High rates of dependency on credit|
|High rate of benefit dependency||Lack of savings buffer|
|Poor provision for later life||Not prepared for later life|
|Little or no savings buffer|
|High levels of debt/over-indebtedness|
According to the UK Strategy for Financial Wellbeing, there are 11.1 million adults across the country who fall into one of these two categories. This equates to over half (56%) of all working-age adults in the UK, and 61% of the total adult population, who are classed as inadequate savers.
The national target is to encourage two million more people to save regularly by 2030.
The Financial Wellbeing Survey 2021 found that 61% of UK adults save money either every, or most, months. These people are defined as ‘regular savers’.
Those in the habit of not saving regularly are much more likely to experience financial issues in other areas of their lives, including:
Susceptibility to a dramatic reduction in income, with almost two-thirds (65%) claiming they wouldn’t be able to last three months without borrowing money.
Keeping up with bills—70% would struggle with this, while over two-thirds (69%) would find it a burden.
Reduced happiness—a quarter (25%) of non-savers feel less satisfied with life, and less than a fifth (18%) aren’t happy with their financial situation.
Increased anxiety—just under a third (29%) of those who aren’t saving regularly claim they feel more anxious with regards to money.
Reduced confidence in managing their money, with more than one in six (61%) admitting they no longer feel confident doing so.
Regular saving provides good financial resilience for your future. Those who do save regularly are:
Almost twice as likely to be able to cope with a significant loss of income and keep up with paying bills, as well as less likely to find this a burden (42%).
More satisfied with their life as a whole (44%).
Less anxious about finances (29%).
Almost twice as confident in managing their money compared to non-savers.
Managing your savings is a highly-personalised process. How much you save will depend on the specific reason for saving, and the associated time frame.
Less than a year - can be used to target a holiday, buying a specific gift, or paying one-off, larger bills (e.g. car insurance).
Less than a decade - might be to cover the cost of large expenditures, such as making a downpayment on a house or replacing something significant that breaks (e.g. a boiler).
Lifetime - putting money away for retirement through a lifetime ISA account, for example.
Generally speaking, between 10-15% of your income should go towards a comfortable retirement fund. If you have employer contributions, then this can help reduce the burden (i.e. they contribute 5% and you contribute 5%).
As a rule of thumb, you should establish an emergency fund that can cover up to nine months of your living expenses. This is to account for loss of income should you lose your job, yet still allows you to cover your basic survival costs (i.e. accommodation, bills, food etc.).
Another theory is to follow the 50/30/20 rule, where:
50% of your income should go towards necessities (i.e. needs).
30% goes towards desirable purchases (i.e. wants).
20% goes into a savings account (either retirement, emergencies, or a particular financial goal).
Using this method, up to half of your money is fixed on the non-negotiable aspects of living which you cannot avoid paying out for, such as mortgage/rent, household bills, and groceries.
You may opt for more than 20% towards savings, which is fine and could benefit you in the long run. But any less, and this may mean a longer saving period towards your ultimate saving goals.
The other way to view this is to consider your age bracket. Here is a rough estimate of how much you should be putting into retirement savings by decade, based on the average annual UK wage of £32,292, as of November 2022.
|How much of your salary you should save (by decade)||Amount of savings|
|1 x your salary by the age of 30||£32,292|
|3 x your salary by the age of 40||£96,876|
|6 x your salary by the age of 50||£193,752|
|8 x your salary by the age of 60||£258,336|
The bottom line is, there is no hard-and-fast rule with regards to how much people should save. Whether it’s 5%, 20%, or more, putting money away today will help prepare yourself for a more financially-secure future.
According to UK savings statistics for 2022, savings accounts are the most popular among UK adults, with over half (57%) using these to save money. This is followed by 38% for ISAs.
Around one in seven (15%) UK adults don’t have savings of any kind, with a similar proportion (14%) using cash or a money box to save money. Just over a third (36%) use their current account to store their savings.
When broken down by ethnicity, those from ethnic minorities were much more likely to use credit union savings accounts (11% vs 5%) and savings clubs (8% vs 3%), compared to those from non-ethnic minorities.
Savings facts from the Bank of England show that, as of August 2022, there was almost £280 billion in accounts paying no interest.
Research by the BSA found that almost a quarter (23%) of savers don’t check the interest rate before opening an account, with a third (33%) failing to compare interest rates between other accounts.
However, one in three (30%) claimed to have switched accounts that either provide cashback rewards, bonuses, or lower fees.
Over the last decade, the amount of money saved via non-interest bearing accounts has gradually increased, from just over £110 billion in January 2012 to around £190 billion at the end of 2017.
The following month, January 2018, this figure dropped by £35 billion to approximately £155 billion, before rising again over the following months.
Throughout 2022, the amount of savings in non-interest accounts grew from £257 billion in January to almost £268 billion in August. Even at a rate of 1.5%, this would translate to over £4 billion of interest going into the people’s accounts.
|Reason why people save||Percentage of people who save for this reason (%)|
|For a rainy day||57%|
|Unexpected expense or events||44%|
|Planned expense or events||35%|
|Retirement (excluding pension)||26%|
|In case household income changes||21%|
The majority of UK adults (57%) have savings in place for no particular purpose, and are just accumulating money with the intention of using it some time in the future (i.e. a rainy day).
Just under half (44%) are saving for unexpected expenses or consequences should it happen, compared to just over a third (35%) who are saving with a specific event/expense in mind.
Slightly more than a quarter (26%) are using their savings to supplement their retirement, with just over a fifth (21%) safeguarding for the future should their income change.
As part of our research for UK savings statistics in 2022, we looked at the average savings of men and women across six age groups. The data combined the mean ISA savings and pension savings of each age group to provide one combined figure for average UK savings by age and gender.
In every age bracket, there was a considerable gap in the average UK savings by gender between men and women, with men acquiring considerably more every time. The substantial savings gap begins early, with a male average of £7,756 for those aged 25 and below being 25% higher than females in the same age group.
This financial gulf only accelerates as men continue to accumulate more savings over time. The gap becomes increasingly pronounced by age 45-54, where the average male has acquired almost 35% more savings than women of the same age.
In monetary terms, the savings disparity peaks in our oldest age group, with men aged 65+ having average savings of almost £130,000 more than women of the same age.
Though men had greater ISA savings in every age category, it was in pensions that the biggest gulf in savings between the genders could be seen. By age 65+, the average man will have acquired pension savings of £260,500, with the average woman acquiring £137,400 (around 50% less than her average male counterpart).
These figures indicate that, while men save more on average, the extent of the difference may be largely due to higher average salaries for men and thus increased pension contributions for men in the workplace.
|Individual wealth (£)||Individual wealth (£)||Individual wealth (£)||Forecasts||Forecasts|
|Industry||April 2014 - March 2016||April 2016 - March 2018||April 2018 - March 2020||April 2020 - March 2022||April 2022 - March 2024|
|Accommodation and food service||22,400||21,500||26,100||27,033||28,883|
|Administrative and support service||47,200||53,600||55,500||60,400||64,550|
|Arts, entertainment and recreation||77,500||82,900||75,100||76,100||74,900|
|Electricity, gas, steam and air conditioning||219,600||235,900||249,800||265,300||280,400|
|Financial and insurance||225,000||266,300||267,900||295,967||317,417|
|Human health and social work||123,500||149,900||151,600||169,767||183,817|
|Information and communication||185,900||213,000||230,900||254,933||277,433|
|Mining and quarrying||212,500||215,000||269,300||289,067||317,467|
|Other service activities||104,000||127,300||126,700||142,033||153,383|
|Professional, scientific and technical||206,000||223,800||243,700||262,200||281,050|
|Public administration and defence||258,600||289,500||325,200||357,700||391,000|
|Transportation and storage||110,600||130,300||123,200||133,967||140,267|
|Water supply, sewerage and waste management||75,600||89,300||89,800||99,100||106,200|
|Wholesale and retail trade, repair of motor vehicles and motorcycles||59,400||68,800||78,900||88,533||98,283|
(Source: money.co.uk via ONS)
Our data on the average savings by industry in the UK found those who worked in public administration and defence to have the highest individual wealth. Workers in this industry had an average individual wealth of £289,500 between April 2016 and March 2018, with that number forecasted to rise by more than 30% by April 2022-March 2024.
Real estate and mining and quarrying were the other two industries in our study expected to have an average individual wealth of more than £300,000 by 2024. While real estate came second to public administration and defence for individual wealth, the industry’s projected financial wealth increase of £8,356 was more than double the numbers of any other industry.
At the other end of the table was the accommodation and food service industry. This industry was the only one to show a decrease in individual wealth between April 2014-March 2016 and April 2016-March 2018. With a projected increase of nearly £29,000 between April 2022-March 2024, accommodation and food services recorded a projected individual wealth that was less than half the total of the next lowest industry (administrative and support services).
This sector, along with arts and recreation, were the two industries with the lowest average wealth in the UK, with recorded wealth forecasts for April 2022-March 2024 of £65,550 and £74,900, respectively.
Savings facts from the ONS show that, as of Q2 2022, the average UK household saved 7.6% of their income.
The figures for the average UK household savings ratio reflect the unpredictable nature of the economy, wages, and the cost of living over the last decade. After a high point of 10.4% in Q3 2015, the savings ratio began to fall steadily over the following few years.
The peak of the slump occurred in Q1 2017 when the household savings ratio sunk to 3.3%. While this figure came as part of a wider downward trend, the particularly low percentage may be down to the economic and social unrest following the Brexit referendum the previous summer.
While the ratio would increase from this point and settle at between 5% and 6% in subsequent years, it remained some distance away from the UK household savings statistics recorded pre-2016. This would change dramatically in Q2 2020, however, when the ratio soared to 26.8% in the wake of the Covid-19 pandemic.
The household savings stats remained unusually high throughout the pandemic, with rises and falls in line with increases and decreases in lockdown restrictions. While the year to date has seen the savings ratio settle, the Q1 and Q2 figures of 8.3% and 7.6% for 2022 suggest the numbers are likely to remain higher than pre-pandemic levels throughout the rest of the year.
UK savings statistics for 2022 highlight that London residents have the highest monthly savings of anyone in the UK, when looking at average savings rate by UK region. With average monthly savings of almost £270 per month (£3,240 per year), this figure suggests that the typically higher wages in the capital have had an impact on total savings.
Less than £3 per month separated second place (Yorkshire and Humber) and fourth place (North East) in the study, suggesting that similar savings habits can be found in much of the UK.
Of all the English regions, only the North West and South West recorded average savings figures of below £200 per month, with the South West’s total of £177.62 the lowest in the study. Northern Ireland and Wales recorded the next lowest average savings across the UK, with monthly totals of £183.73 and £186.61, respectively.
|Year||Average equivalised disposable income by household|
Annual data on average household wealth in the UK shows a slow rise in household disposable income over the last decade. Between 2012 and 2021, average disposable household income in the UK has risen by more than 10%, from £33,514 to £37,622.
While this rise represents a substantial increase over the last decade, there have been numerous instances in which disposable income has decreased from one year to the next. Between 2015 and 2017, the total disposable income fell slightly for two consecutive years, with a similar decrease occurring between 2019-20 and 2020-21.
The biggest monetary increase would occur between 2018-19 and 2019-20, when household disposable income increased by nearly £1,500, from £36,397 to £37,839.
With a median wealth of £381,100, people aged between 60-64 have the highest average wealth by age in the UK as of March 2020. The data shows that average wealth rises in every age group from 16 to 64, with the numbers reducing from 65-69 onwards.
The biggest percentage increase can be found between the age groups 25-29 and 30-34, where the median wealth almost doubles from £22,400 to £44,700.
The biggest monetary increase can be found between the age groups 55-54 and 55-59, when average wealth accelerated by over £80,000.
According to regional UK savings statistics, Inner London - West is the region with the highest annual wealth across Great Britain as of March 2020. With an estimated wealth of £621,000, the capital’s figures were more than £120,000 higher than Surrey, East and West Sussex—the place with the second-highest figures in the average wealth by regional statistics.
The figures show a significant difference in average wealth by region between northern and southern areas of England, with southern regions responsible for each of the top five places and every average wealth above £400,000.
Of the northern regions, North Yorkshire’s average wealth of £398,200 was the highest in the study, with North Eastern Scotland’s total of £334,800 the highest average wealth in Scotland.
At the other end of the table, bottom-placed East Yorkshire and Lincolnshire’s average wealth of £177,000 was more than 70% less than Inner London - West, highlighting the significant differences in capital wealth across Great Britain. The only other region to record an average wealth below £200,000 was the West Midlands with figures of £196,500.
According to student savings stats from the 2022 Student Money Survey, 52% of students surveyed admitted they had considered dropping out of university due to financial worries. This was up from 41% in 2021.
Over a third (36%) of students claimed to use their overdraft as a source of income, with 44% saying they turn to their bank, and 53% for their savings, in the case of a cash emergency.
According to recent student savings statistics, the average student spent £924 per month on outgoings in 2022—a 14% increase on the previous year.
Rent accounts for over half (54%) of a student’s monthly living costs, followed by groceries (13%), and energy bills (7%).
The average maintenance loan for a UK student is £485 per month. In real terms, this covers less than half (48%) of a typical student’s monthly outgoings, resulting in a shortfall of £439 per month. In the 2021 survey, the corresponding figure for shortfall was £340 per month, highlighting the fact that students in 2022 are almost £120 a month worse off compared to those in 2021.
The maximum funding for living costs in 2022/23 is going to increase for students around the UK:
4.5% for Scottish students.
3.5% for Welsh students.
2.3% for English students.
0% for Northern Irish students.
These figures, while welcomed by the UK student population, are likely to be dwarfed by the rising cost of living and inflation.
As of October 2022, inflation stood at 11.1%, with food price inflation reaching 16.2% (the highest rate of increase in 45 years). This means their already-stretched maintenance loans will need to go further, and either face cuts in their expenditure or increase their level of income.
Some students may turn to the ‘bank of Mum and Dad’ to help them out financially whilst at university. Even so, the average student receives almost £150 a month from their parents, which still leaves a shortfall of almost £290 per month.
As a result, when surveyed, 66% of students felt the maintenance loan was not enough for them to live on. Over half (57%) used their savings as a source of money—up from 50% the previous year. This was the third most common response behind part-time jobs (62%), and parents (59%), and ahead of maintenance loans (53%), and overdraft (36%).
According to the 2022 Student Money Survey, two-thirds said they had saved up money to go to university. This was down from 69% in 2021, and 70% in 2022.
The average amount of money that UK students had in their savings in 2022 was £1,280. Just under one in five (17%) of students had no money in their savings in 2022—the most popular response—followed by £1,001-£2,500 and £101-£500 (both 14%).
The same proportion of students (13%) had less than £100 in their savings compared to those with £2,501-£5,000.
Just 3% of students had in excess of £20,000 in their savings account, with 5% who had between £10,001 and £20,000.
Lifetime ISAs (LISAs) can help you save up to £4,000 a year. Every financial year (April to April), the Government pays a 25% bonus on the amount saved, meaning you could receive up to £1,000 each year for no cost. This bonus only applies, however, if you use the savings to buy your first house, or after you turn 60.
A survey by Save The Student found that almost a third (32%) of students questioned didn’t know what a LISA was. Just under a fifth (18%) had one, while the remaining 50% were aware of them, but hadn’t opened one.
Around three-quarters (74%) of students surveyed admitted to not being overdrawn at all, with 13% going into their overdraft by up to £500.
Amongst students who have overdrafts, just over a quarter (27%) had hit their overdraft limit at some point in the past, with almost half (46%) not knowing when to repay their overdraft.
More than one in five (22%) of students said they have used buy now, pay later (BNPL) sites, such as Klarna, Clearpay, and PayPal Credit, with 5% stating they used these sites on a regular basis.
The best place to save your money is more complex than just picking the savings account with the highest rate of interest. Despite this, the rate of interest you get on your money will likely be a deciding factor.
In November 2022, the Bank of England increased the benchmark base rate from 2.25% to 3%—the eighth consecutive hike since December 2021, and the highest for 14 years. This also happened to be the biggest single increase in the base rate since 1989.
This followed a 0.5 percentage point increase in September 2022 (1.75% to 2.25%), with analysts suggesting rates could reach 4.75% by 2023.
With historically low interest rates, some may question: is having a savings account worth it? The good news for savers in 2022 is that with rising interest rates, banks and building societies normally pass these onto the consumer. This provides competitive deals, encouraging people to save with them and help get a decent return on your savings.
As of February 2022, the average interest rate for an instant-access savings account was 0.11%, whereas for a cash ISA account, the corresponding figure was 0.31%. Rates on easy-access savings accounts have reached 2.75%, and for those willing to lock their savings in for a year in a fixed rate cash ISA, or a fixed rate bonds account, returns are close to 4.5%.
The main benefit of an ISA is that you can earn interest tax-free. If someone with an average salary (around £32,000 a year) saved 8.3% of their income, and put it in an average instant-access savings account for 12 months, they would receive £2.27 in interest (after tax). Compared to the average cash ISA, this figure would be nearer £8.
In a recent survey by the BSA, just under a third (31%) of people surveyed admitted they never checked what interest rate they were getting with their bank or building society.
If you’re looking to play the long game, you may wish to choose a lifetime ISA, earning you 25% on savings up to £4,000 a year. Or you may like to choose a fixed-bond savings account, that ties your money up for a set term, during which you agree not to make a withdrawal. A savings bond normally requires that you invest a set sum of money (usually a minimum of £100, but sometimes up to £5,000) in return for a fixed-rate of interest over a set time period.
Alternatively, if you’re after a more flexible savings account, you may opt for a notice savings account, which has common notice periods ranging from seven to 30 days, extending up to 120 days.
Studies have also found that hoarding cash at home can be bad for your financial health, therefore the best place for your money is in a savings account. Savers can now get over 2% on a savings account, while still maintaining access to their money.
UK savings statistics highlight that over the course of 12-months, savers could be missing out on over £350 per year on a £10,000 savings pot, purely by choosing not to switch to a savings account with a higher rate of interest.
In 2022, the effective interest rate paid on individuals’ new time deposits rose from 2.49% in September, to 3.26% in October—the largest monthly increase since December 2021. In June, this figure stood at 1.58%, having risen by 0.33% from May.
The question of how to save money during the cost of living crisis will be an anxious topic for many across the UK.
According to recent cost of living statistics, a third of savers (33%) admitted if they lost their income, they wouldn’t have enough in their savings to cover living costs for the following month.
More than a third (36%) of UK savers surveyed between September and October 2022 said they were relying on their savings to get them through the cost of living crisis. More than half (55%) have reduced their savings contributions, with over a third (35%) not saving anything during this financially-difficult time.
Regardless of the financial pressures caused by rising living costs, almost two-thirds (64%) of those with no savings claimed they could probably save at least £10 a month.
With so many people relying on their savings as a source of income, finding the best savings account has never been so important.
Under the UK’s current triple pension lock, the State Pension is due to increase each year in line with inflation, average increase in UK wages, or 2.5% (whichever is the highest).
|Financial year||Factor||Based on:||Consumer Price Index (CPI) inflation||Average earnings||Retail Price Index (RPI) inflation|
(Source: House of Commons Library)
The triple pension lock was introduced in 2010 by the Conservative/Liberal Democrat coalition government, and comes into effect each April.
The aim of the triple pension lock is to ensure the value of the state pension isn’t overtaken by the increased cost of living, or the working population’s income. It protects only the full, basic State Pension of £134.25 per week, and the full, new State Pension of £175.20.
As the triple pension lock index rises each year by the highest of the three indicated factors, it becomes more generous than each of the individual components, which compounds over time.
|Financial year||Actual value of State Pension (triple-locked)||State Pension (if it were based on Consumer Price Index (CPI))||State Pension (if it were based on average earnings)||State Pension (if it were based on the higher of CPI or earnings)|
(Source: House of Commons Library)
The full basic State Pension for an individual in 2021/22 will be £137.60 per week, which is:
10.8% higher than if it had been CPI-indexed since 2011/12.
10.3% higher than if it had been linked to average earnings since 2011/12.
3.8% higher than if it had been ‘double-locked’ in line with earnings or CPI, without the 2.5% minimum increase.
Before the Autumn mini-budget of 2022, the UK Government was planning to increase state benefits in line with average wages, resulting in a rise of 5.7% and savings of £6 billion in 2023.
Around 12.4 million people currently receive a state pension (approximately 18% of the UK population), and accounts for just under 50% of total annual government expenditure. In 2021-22, this equated to approximately £104.9 billion worth of spending—a £2.9 billion increase from 2020-21.
The Department for Work and Pension (DWP) forecast that total State Pension expenditure would be:
£7.9 billion (8.1%) more if the triple-lock had been upgraded in line with average earnings since 2011/12.
£3.1 billion (3%) more if the triple-lock had been ‘double-locked’ using the higher of earnings or prices (but not incorporating a 2.5% minimum increase) since 2011/12.
Those who have no other source of income above retirement age, can also claim for pension credit, which will increase by 10.1% from April 2023. As of August 2021, 1.4 million people received pension credit—although this doesn’t include those who are eligible and didn’t claim it.
Choosing the right savings account will very much depend on your personal circumstances, savings goals, and how accessible you need your money to be in the future. One of the main reasons for opening a savings account is to target a long-term savings goal: retirement.
According to retirement savings statistics from the Pensions Regulator’s Compliance Report, around 10.7 million UK adults had joined an auto-enrolment pension scheme, as of February 2022. This meant more than two-thirds (69%) of the UK workforce are members of a pension scheme, representing 23.1 million people.
This does, however, mean that around one in three UK workers aren’t currently signed up to a pension scheme, representing over 10 million employees.
In 2019-20, the Family Resources Survey found that just over half (52%) of working-age adults actively participated in a pension. Participation was, however, not evenly split between employees and the self-employed (75% vs 18%, respectively).
As of August 2021, 12.5 million people were receiving their State Pension, an increase of 88,000 from the previous year. Of these, approximately 2.2 million were on the New State Pension (NSP), which was introduced in 2016. This was a rise of 620,000 compared to August 2020.
Alongside this, people may choose a lifetime ISA to supplement their State Pension when they retire. This allows you to save up to £4,000 each tax year, and receive a bonus of 25% from the Government. The amount you pay in is related to your annual ISA allowance, which stands at £20,000 as of 2020/21. This means, if you pay £4,000 a year into your lifetime ISA, you can still pay £16,000 a year into other ISA accounts.
Comparing pension accounts will help find the product that is right for you and your circumstances. Whether that is an income drawdown pension, self-invested personal pension (SIPPS), or something more bespoke like a personal pension plan, the market is full of exciting opportunities with competitive rates.
Even if you already have one set up, transferring your pension to a new provider can help save on fees, while simultaneously offering more control of your money.
According to our savings report, there were over 8.2 million defined pension contributions in 2021, accounting for almost 29% of the UK workforce. By contrast, there were a little more than eight million from employers, constituting 28% of UK companies.
Nearly 3.8 million employers contribute £600 or more, compared to around 2.9 million employees (representing 36% and 27% respectively)—the most common amount contributed for each group.
Generally, as the contributed amount increases, so does the number of employers and employees. The exception to this is for pension contributions of £500-£600, where the respective numbers drop to just over one million for employers and 986,000 for employees.
Savings facts from the ONS found that group personal pension plans are the most popular type of pension provision in the UK. This represents more than two-thirds (67%) of all pension plans, with nearly 15% of the UK workforce opting into this type of provision.
Of these, almost half (49%) are contributing over £600 a month, followed by 16% for £400-£500.
The next most common type of pension plan is a group stakeholder pension, representing just over a fifth (21%) of all provisions for less than 5% of the UK workforce. Like group personal pensions, 40% of people pay £600 or more per month into their scheme.
Group self invested pensions are the least preferred option in the pension savings market. With a little over 340,000 in place, this represents just 5% of the total pensions market, and 1.2% of all UK employees. Almost one in six (59%) of people with this type of scheme pay at least £600 a month into their retirement plan.
UK savings statistics indicate that, as of 2021, one in five UK employees have no official employer pension provision in place. This represents over 5.8 million workers, or 20% of the UK workforce.
Of these, less than a quarter (24%) are putting between £100-£200 a month into a savings account with retirement in mind, followed by 16% each for contributions of less than £100 and £600 or more.
|Industry type and description||Estimated total pension schemes (2021)|
|Human health and social work activities||3,359,000|
|Wholesale and retail trade; repair of motor vehicles and motorcycles||2,734,000|
|Professional, scientific, and technical activities||1,546,000|
|Public administration and defence; compulsory social security||1,516,000|
|Transportation and storage||916,000|
|Administrative and support service activities||897,000|
|Financial and insurance activities||878,000|
|Information and communication||772,000|
|Accommodation and food service activities||581,000|
|Real estate activities||298,000|
|Arts, entertainment, and recreation||282,000|
|Water supply; sewerage, waste management, and remediation activities||142,000|
|Electricity, gas, steam, and air conditioning supply||140,000|
When savings stats were broken down by industry, there were more pension scheme contributions by the education sector in 2021 than any other.
Last year, there were more than 3.6 million pension schemes in place for those working in education, followed by almost 3.4 million for human health and social work. Those working in wholesale and retail trade (specifically the motor industry), as well as the manufacturing sector, were also well represented with 2.7 million and two million pension schemes respectively.
The least represented sectors for the total number of pension schemes were those that supplied facilities, such as water, sewage, and waste, as well as electricity, gas, steam, and air conditioning. These respective figures were around 140,000.
|Manufacturing||4 to <8%||4 to <8%||4 to <8%||4 to <8%||4 to <8%||4 to <8%|
|Electricity, gas, steam and air conditioning supply||12 to <15%||10 to <12%||10 to <12%||10 to <12%||10 to <12%||10 to <12%|
|Water supply; sewerage, waste management and remediation activities||8 to <10%||8 to <10%||8 to <10%||8 to <10%||8 to <10%||8 to <10%|
|Construction||4 to <8%||4 to <8%||<4%||4 to <8%||4 to <8%||4 to <8%|
|Wholesale and retail trade; repair of motor vehicles and motorcycles||4 to <8%||4 to <8%||4 to <8%||4 to <8%||4 to <8%||4 to <8%|
|Transportation and storage||8 to <10%||8 to <10%||4 to <8%||4 to <8%||8 to <10%||8 to <10%|
|Accommodation and food service activities||<4%||<4%||<4%||<4%||<4%||<4%|
|Information and communication||4 to <8%||4 to <8%||4 to <8%||4 to <8%||4 to <8%||4 to <8%|
|Financial and insurance activities||8 to <10%||8 to <10%||8 to <10%||8 to <10%||8 to <10%||10 to <12%|
|Real estate activities||8 to <10%||8 to <10%||4 to <8%||4 to <8%||4 to <8%||8 to <10%|
|Professional, scientific and technical activities||4 to <8%||4 to <8%||4 to <8%||4 to <8%||4 to <8%||4 to <8%|
|Administrative and support service activities||4 to <8%||<4%||<4%||4 to <8%||4 to <8%||4 to <8%|
|Public administration and defence; compulsory social security||15 to <20%||15 to <20%||15 to <20%||15 to <20%||15 to <20%||>20%|
|Education||15 to <20%||15 to <20%||15 to <20%||15 to <20%||15 to <20%||15 to <20%|
|Human health and social work activities||10 to <12%||10 to <12%||10 to <12%||10 to <12%||10 to <12%||10 to <12%|
|Arts, entertainment and recreation||8 to <10%||4 to <8%||4 to <8%||4 to <8%||4 to <8%||4 to <8%|
(Source: money.co.uk via ONS)
Our pensions and retirement savings report shows that, as of 2021, the sector that contributed the most to workers’ pensions was public administration and defence, at just over 20%, followed by education at around 15%-20%.
Those working in an industry that supplies electricity, gas, steam, and air conditioning could expect an average employee contribution of between 10%-12% in 2021. However this is a significant drop since 2016, when they could have expected between 12%- 15%.
The vast majority of sectors have seen stagnation in their employer pension contributions over the past five years. Notably, those in public administration and defence have seen a rise between 2020 and 2021, from 15%-20% to over 20% (the largest increase of any sector). In this same period, one other sector also witnessed an increase (financial and insurance services), which rose from 8%-10% to 10%-12%.
At the other end of the scale, the arts, entertainment, and recreation industry witnessed a decrease between 2016 and 2017, from 8%-10%, down to 4%-8% (a level that has remained ever since).
On average, the smallest contributions came from the accommodation and food service sector, at below 4%. This has historically been low, with the sector recording scores of less than 4% since 2016.
|Manufacturing||4 to <8 %||4 to <8 %||4 to <8%||4 to <8%||4 to <8%|
|Electricity, gas, steam and air conditioning supply||10 to <12%||10 to <12%||10 to <12%||10 to <12%||10 to <12%|
|Water supply; sewerage, waste management and remediation activities||8 to <10%||8 to <10%||8 to <10%||8 to <10%||8 to <10%|
|Construction||4 to <8 %||<4%*||<4%*||<4%*||<4%*|
|Wholesale and retail trade; repair of motor vehicles and motorcycles||4 to <8%||4 to <8%||4 to <8%||4 to <8%||<4%*|
|Transportation and storage||4 to <8%*||4 to <8%*||4 to <8%*||4 to <8%*||4 to <8%*|
|Accommodation and food service activities||<4%||<4%||<4%||<4%||< 4%|
|Information and communication||4 to <8%||4 to <8%||4 to <8%||4 to <8%||4 to <8%|
|Financial and insurance activities||8 to <10%*||8 to <10%*||8 to <10%*||8 to <10%*||8 to <10%*|
|Real estate activities||4 to <8%*||4 to <8%*||4 to <8%*||4 to <8%*||4 to <8%*|
|Professional, scientific and technical activities||4 to <8%||4 to <8%||4 to <8%||4 to <8%||4 to <8%|
|Administrative and support service activities||<4%*||<4%*||<4%*||<4%*||<4%*|
|Public administration and defence; compulsory social security||>20%||>20%||>20%||>20%||>20%|
|Education||15 to <20%||15 to <20%||15 to <20%||15 to <20%||15 to <20%|
|Human health and social work activities||10 to <12%||10 to <12%||10 to <12%||10 to <12%||10 to <12%|
|Arts, entertainment and recreation||4 to <8%||4 to <8%||4 to <8%||4 to <8%||4 to <8%|
(Source: money.co.uk via ONS) |Note: These figures are forecasts. Those with an asterisk (*) denote a change from the current (2021) contribution bracket.
Our savings stats show that, in 2026, the sectors expecting to see the largest employee pension contributions are public administration and defence (20%+) and education (15-20%). Both will retain their places as the largest contributing sectors to employee state pensions from previous years.
By 2026, those working in wholesale and retail trade can expect their employer pension contributions to drop from between 4%-8% to under 4%.
Some industries are expected to have a sustained decrease in their employer pension contributions between 2022-26. For example, administrative and support services should see a decrease from 4-8% in 2021 to less than 4% from 2022 onwards. Construction should see an identical trend from 2023 onwards.
On the other hand, contributions from companies in the real estate sector, as well as transport and storage, are predicted to go from 8-10% in 2021, to 4-8% from 2022-26. The corresponding figures for financial and insurance activities are expected to go from 10-12% in 2021, to 8-10% from 2022 onwards.
Accommodation and food services will still remain as the smallest pension contributor into 2026, at less than 4% on average—a trend that has remained constant since 2016.
Choosing an ISA account allows you to earn interest without paying any income tax, providing you don’t pay in more than your tax allowance for the year. For the 2021/22 tax year, this stands at £20,000.
According to UK Government ISA statistics, over 12 million adults subscribed to ISAs between 2020-21. These numbers represent a decrease from 2019-20, when around 13 million new accounts were opened.
The figures show a slow but steady downward trend in the subscription of ISA accounts from its peak in 2010-11, when over 15 million accounts were opened. A notable exception to this occurred in 2019-20, with a rise of nearly two million subscriptions, followed by another decrease in 2020-21.
These savings facts suggest that the advent of the pandemic may have halted a potential upward trajectory in saving figures.
Stocks and shares ISA accounts constituted over 3.5 million of the adult ISAs opened in 2020-2021, an increase of over 800,000 from the previous year. Contrastingly, the rate of standard cash ISA subscriptions dropped by over 1.6 million during this period.
Recent ISA statistics from our savings report show that the highest figures for ISA market value were recorded between 2020-21, with an overall value of £687 billion—a rise of £67 billion from the previous year. This rise was primarily caused by a 32% increase in the market value of funds held in stocks and shares ISAs, which rose from around £28 billion to over £41 billion in the same year.
These figures are indicative of a steady upward trajectory over the last decade, which has seen the overall market value of ISAs increase by nearly £300 billion since 2010-2011.
Our savings report analysed adult ISA holders in 2019-2020 based on their annual income, by looking at the quantity of ISA holders in each income band and assessing the median ISA market value for each group.
UK savings statistics show a strong correlation between higher income groups and increased ISA value. The lowest income band (£0-£4,999) recorded the lowest average ISA market value (£10,354), with each subsequent band rising in value before peaking with account holders earning £150,000 or more. With a median value of almost £75,000, this group were found to have an average of around 36% more ISA savings than the next highest income band (£100,000-£149,000).
With eight million accounts, the income band of £10,000-£19,999 had the highest number of ISA holders. The quantity of ISA holders declined sharply by 70% as earnings reached between £50,000 and £99,999, before declining further for those earning £100,000-£149,000, to around 0.4 million account holders.
With 2.4 million ISA holders, and an average value of £3,900, under-25s were responsible both for the lowest quantity and lowest value of ISA accounts. According to our savings report, as the age groups increase, subscription figures remain similar (between 4.2 and 4.5 million), before rising sharply, with the oldest age group (65+) up to 7.1 million.
Despite having the highest number of ISA holders and the most savings, 70% of accounts holders aged 65+ were found not to be active savers in 2019-2020.
Conversely, while ISA statistics show that under 25s have the least savings in their accounts, nearly 80% of account holders in this age group were found to be active savers during this period.
Find out how you can earn interest tax free with a cash ISA account for the over-60s
The ISA statistics by age and gender from our savings report show that in every age group, women have more ISA accounts than men. With approximately 14.2 million accounts in total, women have around 1.3 million more accounts than their male counterparts.
The greatest differences can be found in the older age categories, with women aged 55-64 and 65+ having approximately 300,000 more savings accounts than men of the same age.
Though women have more accounts in all age groups, the trajectory is largely the same across both genders, with the lowest number of subscribers occurring below the age of 25 and the highest age group being 65+.
The higher uptake of ISA accounts in women, however, isn’t matched by an increased market value. In every age group, men were found to have a higher average ISA value than women, with a difference of over £3,000 in the 55-64 age category being the largest gap.
This indicates that, while women are more likely to open ISA accounts, it’s men who make up the majority of the biggest savers.
Our savings report shows that, with approximately 55% of residents holding an account, the South West was the UK region with the highest percentage of ISA account holders. London’s percentage of 45% was the lowest of all English regions, with Northern Ireland and Scotland the lowest overall, with 46% and 36%, respectively.
Despite London’s comparatively low uptake, the capital was found to have one of the highest average ISA market values across the country (£24,900), second only to the South East (£27,600).
Contrastingly, Northern Ireland’s low ISA uptake was matched by its average market value, with the country’s median wealth of £16,800 by far the lowest across the UK—and £3,200 less than Wales on average.
|Year||Number of withdrawals|
Lifetime ISA (LISA) statistics for withdrawals for house purchases have accelerated rapidly year-on-year. The low number of 50 LISA withdrawals for 2017-18 can be attributed to the fact that these accounts didn’t become available until April 2017. Therefore, not enough time had accumulated for most people to save enough cash, in order to withdraw for a house purchase.
The rise of nearly 30% between 2020-21 and 2021-22 suggests that these figures are likely to accelerate further in the coming years, as new accounts are opened and existing accounts accumulate further savings.
|Year||Average value of withdrawals|
The average value of withdrawals has risen with each passing year since 2017-18. The biggest increase occurred between 2019-2020 and 2020-2021, when the average withdrawal increased by nearly £1,000.
As of 2022, the average value of withdrawals for a house purchase stood at £13,192—a 35% increase over the past five years.
Saving for your children’s future is an important part of financial planning. Choosing a children’s investment ISA means you can open an account for your child with as little as £1. From the age of seven, they can start to manage their own account, and at the age of 18, the account can be transferred into their own name.
|Account type||Number of accounts (millions)||Average market value (£)|
Child trust fund statistics from our savings report show that there are approximately 5.4 million child trust fund accounts in the UK, with stakeholder accounts making up around 80% of this figure. However, this type of account had the lowest average market value (£1,176), which was £455 less on average than the next most popular (non-stakeholder, child trust fund accounts).
Continuing matured accounts had the highest average market value (£2,721), yet only account for less than 3% of the overall total number of accounts.
150,000 people have opted for a continuing mature account, as opposed to 180,000 for claimed mature accounts. However, despite having 30,000 fewer accounts, the former has, on average, about £600 more in terms of market value, by comparison.
Government data from 2020-21 shows that the subscription volume of child trust fund accounts decreased as the price increased. Of the near 5.5 million active child trust fund accounts, over 90% received no subscription.
For all account types, the lowest value subscription category of £1-249 was the most popular, with 511,000 people paying within this range.
The vast majority of accounts with subscriptions over £1000 were stakeholder accounts (75%), with only 4,000 mature accounts within this subscription range.
Choosing a junior ISA can help build up a pot of money (up to £9,000 in the 2021/22 tax year), ready for a child’s 18th birthday. As of 2022, the best junior cash ISAs will offer anything up to 3.50% AER, however, if a child’s account earns more than £100 in interest, the parent must pay tax on those savings.
Government data shows a continued rise in junior ISA account subscriptions throughout the last decade. The biggest annual increase occurred between the years 2015-16 and 2016-17 when account subscriptions accelerated by over 12%.
Following a record subscription rate of 706,000 in 2019-20, the junior ISA saving account statistics for 2020-21 marked the first year a decrease occurred in the subscription rate since records began. As of 2021, the number of junior ISA subscriptions stood at 668,000.
The total market value of junior ISAs continues to grow exponentially every year. The biggest percentage increase occurred in 2018-2019, when the market value increased by almost 35% from the previous year.
The most recent value increase of £1.8 billion in 2020-2021 represents the biggest annual financial increase since accounts were made available— a 25% increase from 2019-20 and almost seven times more than 2013-14.
With account uptakes remaining high and existing accounts increasing in value, it’s reasonable to expect these figures to continue to accelerate rapidly in the coming years.
|Year||Total bonuses paid||Average annual bonus value||Total property completions||Average property value|
(Source: HM Treasury)
Government data from our savings report shows that both account payments and home purchases via Help to Buy accounts are on the rise.
From its first full year available in 2016, the Help to Buy accounts received a rise of almost 50% in total bonuses paid in 2017, followed by a more modest increase the following year. As of 2021, total bonuses from Help to Buy accounts have almost doubled from their inception in 2016, to over £122,000.
The average annual bonus received between 2016-21 has almost trebled, from £579 in 2016 to almost £1,500 in 2021.
A small decline can be seen both in total bonuses paid and property completions in 2019 and 2020 (of around £7,000 and 6,000 sales, respectively), at least in part due to the Covid-19 pandemic. This was followed by a rise in 2021 by nearly 15,000 bonuses.
Average property purchase value has seen a 7% rise in the previous five years, reaching a peak of over £182,000 in 2021—a reflection of the rising inflation and UK house prices over the recent years.
It is worth noting that you can no longer open a Help to Buy ISA.
Help to Save accounts are a government-run savings incentive for UK residents on lower incomes. For those that qualify, the Government will add 50p for every £1 saved over a four-year period.
Opening a Help to Save account means you can save between £1 and £50 per month. By saving the maximum amount over four years, you will have saved £2,400 (48 months x £50). With the UK Government bonus of £1,200, this will mean a total saving of £3,600.
|Year||Total number of accounts opened||Number of individuals who made a new deposit||Total value of new deposits (£)||Number of individuals who have made a withdrawal||Total value of withdrawals (£|
The annual figures for Help to Save ISA statistics show a significant rise of over 25% in the number of accounts opened in 2020, before a similarly sharp decline in new accounts the following year. This decrease, from 104,250 to 80,500, is reflective of the changes in eligibility for the accounts during this time, which resulted in fewer people being able to qualify for a Help to Save account.
The number of new deposits, and the total value of new deposits, have continued to accelerate with each year since 2019, rising by 1.3 million and £65.5 million respectively.
Both the number of individuals making a withdrawal and the total value of withdrawals have also continued to rise annually. The biggest increase in withdrawals occurred between 2020 and 2021, when the total value of withdrawals nearly doubled to over £20 million. During this period, the number of withdrawals rose by 35%, to 84,750 in 2021.
While the increased number of accounts will naturally increase the likelihood of account withdrawals, these figures may also be attributable to the rising cost of living that may have resulted in more people making unplanned withdrawals.
Our savings report indicates that, as of March 2022, there have been almost 360,000 Help to Save accounts opened across the UK, with the combined deposits valued at over £275 million.
The South East was responsible for both the most accounts opened and the highest value deposits, with opening figures of 40,850 and a total deposit value of over £29 million. This was followed by London, with the UK capital obtaining the second-highest figures in both categories (36,900 and almost £25.4 million, respectively).
Figures for the North East of 16,050 accounts are particularly low compared to the rest of England, with the next lowest region (East of England) found to have nearly double the number of account subscriptions.
Outside of England, Northern Ireland’s account opening figures of 11,450 and a total deposit value of just over £7.9 million were by far the lowest in both categories. By comparison, the respective figures of 17,800 and £12.8 million for Wales and 25,600 and £17.9 million provide context between different countries of the UK.
As of June 2022, 82% of people surveyed across the UK were turning off lights in a bid to save money during the cost of living crisis. This was the most popular method for saving money, followed by turning off electrical goods on standby (70%) and eating out less than usual (64%).
More than half of people stated they were looking to reduce their consumption habits, such as takeaways (58%), food shopping (56%), and household appliance usage (53%).
|App||Monthly global downloads (Android)||Monthly global downloads (iOS)||Total global downloads|
(Source: money.co.uk via Sensortower via 42matters.com)
Of all the available apps for saving money, Revolut sits at the top in terms of global downloads (1.3 million). This is almost twice as many as second-placed Idealo, with 700,000.
As of December 2022, Monzo is the third most popular downloaded app for saving money, with 200,000 downloads. This is twice as many as fourth-placed Starling Bank, with 100,000. Money management app Plum is in fifth, with 80,000 downloads across Android and iOS devices in 2022.
Android was slightly more popular than iOS as the source of apps for saving money (1.4 million vs 1.3 million), with around 50% of Android and iOS downloads attributed to Revolut alone.
Our guide to stocks and shares apps available on the market can help with learning how to choose shares and trade, and running a portfolio from the comfort of your screen.
The base rate is the interest rate set by the Bank of England (BoE) for lending to other banks, which is then used as a benchmark for interest rates as a whole in the UK.
A cash ISA allows you to save money and earn interest on the money you put away, but without paying tax on the money you make.
Child trust funds (CTFs) were set up as long-term, tax-free savings accounts for children born between September 2002 and 1st January 2011. The CTF scheme was closed in 2011, but you can continue to add up to £9,000 a year to an existing CTF.
The consumer price index (CPI) is a method of measuring the average change over time in the price paid for average consumer goods and services.
Credit union savings account is a type of savings account where members pool their savings together and lend to one another. These are run by not-for-profit organisations for members who have a common interest, such as members of the same employer, trade union, or attend the same place of worship, for example.
A current account is a type of bank account that allows you to receive money (such as wages from an employer) and withdraw money in the form of cash withdrawals, paying bills, card transactions, or sending money to other people.
A fixed rate bond account is an account that allows you to gain additional interest on your savings, under the proviso that you won’t touch the money for a fixed period of time. In return, you will gain a higher rate of interest compared to easy access savings accounts.
A fixed rate cash ISA (also known as a savings bond account) is a savings account that holds your money in for a set period of time. You will receive a fixed interest rate on the amount of money you have in your account for the duration of the term, and any money earnt during this period is tax-free.
A Help to Buy ISA is a tax-free, individual savings account whereby the UK Government pays you a 25% bonus on your total savings, when you withdraw the money to buy your first property.
Help to Save ISAs are a government-run savings account for people on lower incomes. The Government will add a bonus to your account equivalent to 50p for every £1 you save over a four year period.
The household savings ratio is the proportion of a household’s disposable income in the UK that is not spent on consumable goods and services. It represents the total amount of net savings as a percentage of net household disposable income.
An income drawdown pension is a pension savings account that allows you to turn savings into cash for you to live off in your retirement. They allow you to make regular withdrawals or take out lump sums to use as an income during retirement, or to make a specific purchase.
An individual savings account (ISA) is a savings account that allows you to earn interest without paying any income tax. However, there are limits as to how much you can put into your account before you incur a tax charge.
Inflation-adjusted median wealth is an economic measure that provides an indication of an individual’s actual purchasing power (i.e. the value of the currency at a given time in terms of the number of goods and services it can buy). With inflation, purchasing power can decrease as rising prices can reduce how much people can buy with their wages, in real terms.
An instant access savings account (also called an easy access savings account) allows you to withdraw and use your money whenever you like. You can earn interest on your savings, but dip into your money when you need to. These are usually associated with short-term savings goals, but, due to their associated freedoms, usually come with lower interest rates compared to other accounts.
Interest-bearing accounts are a type of bank account that allows you to save money whilst accumulating interest. This rate is set by your provider in line with the BoE base rate, and is paid into your account periodically as a percentage of your account balance.
The interest rate is the amount of money that will be paid into your account, as a percentage of the amount you have in your savings.
A junior ISA is a tax-free savings account for young people, which allows you (as a parent) the opportunity to build up money in preparation for their 18th birthday. After this point, they can become the holder of the account.
Lifetime individual savings accounts (LISAs) are tax-free savings accounts whereby the UK Government will add 25% to the first £4,000 you save each year. This is open to those aged between 18-40, and the Government bonus is received if you used the cash to buy your first home, or withdraw it after you turn 60.
Non-interest-bearing accounts are a type of bank account that allows you to save money but without accumulating interest on your balance. These tend to be used by those who wish to have an account for transactional purposes.
A notice savings account allows you to withdraw money providing you do so within a specific notification period. This type of savings account is more flexible than a fixed-term account, but will normally come with less generous interest rates as a result, by comparison.
A personal pension plan is a type of defined contribution (or money purchase) scheme that prepares you for retirement. Unlike a workplace or state pension, it is arranged by yourself, meaning you are in control of who you go with and how much you invest.
A premium bonds savings account is a savings scheme provided by the National Savings and Investments (NS&I) that allows you to buy bonds, as opposed to earning interest, much like a recurring lottery ticket. Each bond is worth £1 and goes into a monthly draw, giving you the opportunity to win prizes between £25 and £1 million, depending on which band you choose to invest in.
A self-invested personal pension (SIPP) is often called a ‘DIY pension’ as you can choose what funds, shares, or other investments to put your retirement savings into, and swap them around as much as you like.
A stocks and shares ISA is an investment that is made tax-free by using your ISA allowance. They allow for a much higher return compared to a cash ISA, but with the risk of losing money if the value of your investment falls or the return is less than the amount you pay in fees and charges.
The triple pension lock was introduced in 2010 by the UK Government and is designed to ensure the value of the state pension isn’t overtaken by an increase in the cost of living or people’s average income.
According to research Building Societies Association (BSA), the mean average amount of savings for someone in the UK is £17,365.
The Building Societies Association (BSA) found that 13% of people have no savings at all, meaning the percentage of people in the UK with savings is approximately 87%.
Lending Stream conducted a study on the average monthly savings in the UK by region. Based on their findings, the average overall monthly savings in the UK would be approximately £213. London was found to be the region with the highest savings, with an average monthly total of £269.07.
Saving plays an essential role in increasing wealth and building a secure future. There are numerous long-term and short-term reasons why people save from the purchasing of assets like homes and cars to ensure stability in the event of an unexpected change in life situation.
A report from the Money and Pensions Service found that 57% of UK adults have savings in place for no specific purpose, and are simply accumulating money with the intention of using it some time in the future (i.e. a rainy day). The same report found 35% of people to be saving for a planned expense or event.
Based on the monthly savings statistics, the average person in the UK saves approximately £2,556 per year.
Saving is a highly personalised process with everything from your future plans, responsibilities, and current financial situation affecting your saving requirements.
While there is no hard and fast rule, it’s generally accepted that between 10-15% of your income should be saved in a pension to ensure a comfortable retirement.
Additionally, accumulating savings that equate to around nine months of your annual salary will provide enough security to help you navigate an unexpected change to your financial situation in the short term such as a job loss or health issues.
Average ISA market value by gender and age
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As a trained journalist, Lucinda has spent the past 10 years writing and editing content for regional and national titles, including The Mirror, WalesOnline and Manchester Evening News. She is now a personal finance editor and specialises in savings, helping people to make confident financial decisions so they can save for what matters most.