At The Nottingham we understand just how much of a challenge it can be to develop good savings habits. One of the best ways to get a better handle on your savings is to look at the ways other people are doing it. So, as part of UK Savings Week, let’s take a look at the current state of savings in the UK. Looking at recent UK savings statistics for 2022 from the Bank of England, we’ll explore how much people are saving, what their motivations are, what methods they’re using, and who’s saving the most. 

How much are people in the UK saving?

According to the Building Society Association (BSA), the average person in the UK has £17,365 in their savings with 61% of UK adults saving money either every, or most, months. However, not everyone is saving at that level, with 34% of adults in the UK having either no savings, or less than £1,000 in their savings. The BoE investigation revealed that one in seven people have nothing in their savings at all.   

Why do people save money?

There are a lot of different reasons why people might save money. We’ve all got our own personal savings goals that we want to meet but there are some reasons that are more common than others. 

The majority of people in the UK, 57%, aren’t saving for any particular reason, and are simply saving their money for a rainy day. The second most common reason for saving is for unexpected expenses or events. 44% of people are saving for the event of something like sudden unemployment or car accidents. 

35% are saving with a specific expense in mind, 26% intend to use their savings to support them during retirement, and 21% of people are saving as a way to safeguard their finances against future income changes.

What saving methods are people using?

It might seem surprising but there are more ways to save than a lot of people expect. What shouldn’t be much of a surprise is the most common way of saving. More than half, 57%, of UK adults use a savings account to save money, followed by 38% using ISAs. 

A significant number of people, 36%, use their current account to store their savings and surprisingly, 14% of people simple use a money box. A similar number of people, 15% have no savings at all.

One of the most surprising discoveries from the BoE statistics is just how much money is contained in UK savings accounts paying no interest: almost £280 billion. 23% of savers don’t bother to check the interest rates before opening an account and 33% don’t compare interest rates between other accounts. 

If you’re thinking of opening a savings account, you should always make sure to check everything from the interest rates to potential fees before committing. 

Who is saving the most money?

There’s a fairly large gap in the average UK savings by gender. Across all age brackets, men tend to save significantly more than women. Men, aged 25 and below save, on average, 25% more than women, a gap that only increases with time. Between the ages of 45-54, the average man has acquired 35% more savings than women of the same age. 

The most significant gap in savings is present in pensions. By 65+, the average man will have acquired £260,500 in savings, while the average woman will acquire £137,400. That’s close to 50% less.

There are, likewise, changes in saving habits based on location. London residents have the highest monthly savings of any UK region, with savings of almost £270 a month. This could well be a result of the higher wages in the capital city. The Southwest recorded average savings of £177.62, making it the lowest region in terms of savings in the UK.

If you’re looking to improve your saving habits, you can find resources on our website, or you can get in touch today to discuss which savings account is right for you.