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The NatWest Savings Index 2024

New insights on how the nation is saving.

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What is the NatWest Savings Index? Open in new window

How do UK cities save? Open in new window

What is impacting savings habits? Open in new window

How do different age groups save? Open in new window

We surveyed 10,000 people based in the UK, to find out about their savings knowledge, attitudes and habits.

Savings can bring a degree of certainty in an uncertain world. Put money aside, and you know you're taking a positive step towards a holiday or house deposit – even if it’s a long way off. Ultimately, this can lead you and your family to a happier, more secure life. And who doesn’t want that?

But over the last few years, high inflation and steep living costs have made it harder than ever to save extra cash each month. With that in mind, we surveyed thousands of people across the UK to get to grips with the way our nation saves today.

The survey was conducted between 19th and 27th March 2024.

What did the Index focus on?

How much do we save?
Where do we get financial advice?
What is preventing us from saving?
What are we saving up for?
What are we willing to give up to increase our savings?
How do we save?

What has the Index told us?

As you might expect, many people are saving less due to hefty food bills and energy costs. Some said loss of income was taking its toll. Others listed poor mental health as a barrier to saving.

And, while we’re all feeling the pinch in some way or another, there’s no doubt some groups are faring worse than others.

But in difficult times, we’re also seeing the green shoots of healthy savings habits and supportive communities. Younger people, for example, are making their own budgeting decisions and talking more openly about money than ever before. Television experts are providing savings advice for people of all ages, while young people look to family, friends and social media.

Read on to find out average monthly savings by age in the UK. As well as how different generations, cities, regions and income brackets are finding their own ways to save – even when things are tough.

Savings trends at a glance

53%

of people don't have a specific savings goal

£203.21

is the average saved per month

£4468

is the average balance in an emergency fund

42%

would give up eating out to save more

How do UK cities save?

Let's start with a snapshot of the UK.

Below, our Index shows different cities and their approaches to savings.

It paints an interesting picture of what different cities prioritise. We can see that residents of Portsmouth place the most importance on savings. Worcester is a city of disciplined savers who never or rarely dip into their saving pot. And when it comes to understanding different money saving methods, Aberdonians rate themselves the highest. Though the people of York can give them a run for their money in a close second place.

But overall, Belfast gives itself the highest marks of all the UK cities surveyed when it comes to healthy savings habits, followed by Birmingham.

The average score across the UK stands at 53.8%. Take a look at how your city fared below.

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How did we create our Index?

We looked at average annual savings as a percentage of income in each city we surveyed.

We also dug into savings habits by city – taking an average percentage of how people responded to the following questions:

How often do you put money into savings?
How important or unimportant do you think saving money is for your financial goals?
How would you rate your understanding of the different ways to save money?
Do you set a budget for yourself?
Do you have a monthly or yearly savings goal?
How often do you dip into your savings?

53.5%

City

Manchester

Liverpool

Index score

Swansea

Aberystwyth

Index score

55.1%

54.0%

53.9%

49.2%

City

Birmingham

Coventry

Worcester

Wolverhampton

Index score

55.9%

54.7%

54.2%

53.2%

City

Sheffield

York

Leeds

Index score

53.5%

53.4%

52.2%

What is impacting savings habits?

The regional and national picture

At a glance:

On average, people in London save the most money each month (£239)
People in the East of England have the highest average in their emergency fund - £5,006
Only 28% of people in Yorkshire would give up clothes/fashion to increase their savings, compared to 39% in London
21% of people in London are trying to save for a house deposit – nationally, the average is 14%.

What is the regional picture of the UK’s habits and attitudes to savings?

On average, people in London save the most each month, and also believe that they should be saving the most.

The big priority for Londoners is saving for a house deposit. Over a fifth (21%) are saving for their own property, far higher than the national average of 14%.

Dining out is seemingly a priority in the capital – only 38% of Londoners are willing to cut down on meals out. Meanwhile, in Scotland, 46% would forego restaurants to maximise savings. People from Aberdeen, Glasgow and Edinburgh all agreed that savings were relatively or very important. In fact, Yorkshire folk seem to place less importance on savings overall.

In the East of England, you’ll find the highest average emergency fund at over £5,000. This makes sense: 48% of respondents from the region said they rarely or never dipped into their savings. People from Norwich and Cambridge also gave themselves relatively high scores for their understanding of different savings methods.

Nationwide, a considerable 60% don’t have a savings goal, with people from Worcester seemingly least likely to set these objectives. 22% of people UK-wide believe nothing is impacting their ability to put money away.

The impact of income

At a glance:

44% of those earning £60k a year save more than £500 a month.
47% of those earning £60k feel negatively impacted by their savings.
47% of people who earn less than £10k don’t have an emergency fund.

What is the link between different income brackets and savings?

Unsurprisingly, higher earners save more. Across the country, the average for saving above £500 a month is 11%. But, if we look at those earning over £60k, the number shoots up to 44%.

Almost 50% of those earning above £60k answered they were confident or very confident on different ways to save. Higher earners are also more likely to speak to financial advisers to help them manage their savings.

Those that earn less, save less. Almost 50% of those who earn up to £5k say they save less than £50 a month.

And the less you earn, the more likely your savings habits are to get you down. Those who earn the least are most likely to say their savings negatively impact their mental health (31%, compared with a national average of 22%). The highest earners, meanwhile, are most likely to say their savings have a positive impact on their mental health.

The big picture

UK savings habits at a glance:

Go-to gurus. People are more likely to get advice from Martin Lewis, rather than banks or other sources, like family or friends.
Getaways, screens and sun creams. As a nation, we’re least likely to give up holidays/leisure (27%), streaming subscriptions (27%) and cosmetics (18%).
Is eating out, out? 42% would give up eating out to save more.
Savings are taking their toll. 22% of respondents said their savings balance affects their mental health.

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

Each month, UK average savings are £203.21. By and large, people tend to save monthly and check their balance weekly. More of us dip into our savings every now and then than don’t.

In terms of the ways we save, we’re happy to keep it simple. 35% of people don’t let their current account drop below a certain balance. 29% of us go manual with a spreadsheet or notepad. 18% of us use bank app budgeting tools, 13% use online tools, and 12% use round-up apps.

56% of us consider saving to be important to our financial goals. We also think we’ve got a pretty good understanding of different savings accounts and methods. We asked respondents to rate their understanding of different ways to save on a scale of 0-10 (0 being no knowledge and 10 being expert-level). On average, people scored a solid 7.4 out of 10.

And, whether we’re jetting off to the Bahamas or taking the coach to Blackpool, we love a good getaway. In fact, saving for a holiday is often our main motivation for putting money away. We’re least likely to give up holidays and leisure activities to save more. We’re also keen to keep hold of our streaming subscriptions and cosmetics.

Social media challenges like ‘no impulse buys’ proved popular – but less so with older savers. While 18-24s are looking to TikTok, more senior savers trust money gurus like Martin Lewis for tips. We also tend to turn to our family to discuss finances.

However, not everyone is saving. Almost 40% of us don’t budget at all and 53% don’t have a savings goal. Some 8% of us don’t have any savings, a quarter have less than £400 in their emergency fund. 13% don’t have an emergency fund.

It’s also clear that our savings habits affect more than our bank balance. Almost a quarter of respondents said the amount they have in their savings account is impacting their mental health.

How do different age groups save?

18-34s: Looking to influencers and breaking taboos

At a glance:

23% of under-24s say they have no emergency fund
28% of under-34s discuss their finances with friends
21% of 18-24s say poor mental health impacts their ability to save
17% of 18-24s turn to social media for savings advice.

How important are savings to younger people?

The 25-34 year olds we surveyed were most likely to find saving money to be very important to their financial goals. Setting a target for how much to save each month was most common for people under 34.

You often hear that people in the UK don’t like to talk about money – but this isn’t true for younger people. Over a quarter (28%) of under-34s openly discuss the once-taboo topic of money with their friends. This is a stark contrast to over 45s, who are far less willing to have financial conversations.

While the most popular source of savings advice is family and friends, 18-24 year-olds are increasingly looking to TikTok.

This feeds into a sense of independence. The youngest age group (18-24) had the highest percentage (69%) of people setting a budget for themselves, followed by 25-34s (67%). And they don’t just stick to savings apps – almost 20% of under 34s use a good-old-fashioned savings jar, while only 12% of older generations do the same.

But there’s no doubt that younger people are also struggling with their savings. 18-24 year olds are saving less than their elders – the lowest average savings of all age groups surveyed. In fact, 23% of 18-24s don’t have an emergency fund at all.

So, what’s behind this drop in savings? Firstly, reduced income. This was the key sticking point young people face in saving. Alongside this, we can see mental health issues limiting the amount that 18-24s are putting away.

This has a knock-on effect. Under 34s are also most likely to be negatively affected by their lack of reserve funds, with 28% of the 25-34 group very concerned about not meeting their savings goals.

26% of over 25s save an average of £100-199 a month, closely followed by 25% of 18-24s.

35-54s: Does growing up mean saving more?

At a glance:

24% of 35-44 year-olds save £200-£500 a month
13% of 35-44s save more than £500
12% of 35-44s save only £1-£49 a month
13% don’t have an emergency fund
12% don’t have savings at all.

How do savings habits differ for mid-Millennials and older Gen X?

The age bracket of 35-44 has the highest percentage (24%) of individuals saving between £200-£500 a month. What’s more, they’re also the largest group saving more than £500. They have the highest average savings amount of any age group surveyed.

Typically, you might expect older groups to save more, due to higher average salaries. Some 12% don’t have savings at all, and 13% don’t have an emergency fund.

Respondents in the 45-54 age bracket are mostly likely to cite the increased cost of groceries and energy as their main barriers to savings. They favour notepads and Excel sheets to keep track of their finances, and are most likely to give up meals out to make up the shortfall. Along with 18-24s, they’re also the group most worried about not reaching their savings goals.

icon of calendar showing 1st date with coins

55+: Secure savers, still open to advice

At a glance:

55-64s have an average emergency fund of £6,107
Over 65s have an average of £6,476 for emergencies
Over 55s have the highest understanding of savings methods
32% of 55-64s look to Martin Lewis for savings advice
49% of 55-64s and 34% of 65+ are primarily saving for retirement.

Why are over-55s the most financially secure age group?

Over 55s have the highest average savings, the largest emergency funds, and seemingly feel relatively secure in their nest egg. Only 7% reported that savings affected their mental health.

There are a number of reasons why over 55s may feel more financially secure than younger people – pensions and property among them. But they also boast a solid knowledge of different ways to save, which can only help.

Put it down to experience, but the age brackets of 55-64s and 65+ have the strongest understanding of different savings and ISA accounts. They’re also the most motivated to save for retirement.

While they aren’t turning to social media, Martin Lewis has a real impact on older savers. Of all age demographics, the finance guru is most popular with 55-64s.

Start your savings journey

It’s been a tricky few years for the economy – but solid savings practices can help you find light at the end of the tunnel. And from Portsmouth to Aberdeen, people are laying the foundations for a more secure future and a happier life.

If you want to learn more about savings, we’ve got a great set of resources to help. Check out our helpful links below.

See all our savings products Open in new window

How to start saving Open in new window

Regular saving to grow your money Open in new window

How to feel more in control of your money Open in new window

Set up your own savings goal Open in new window