- New research from Darlington Building Society reveals 40% of Brits have no savings.
- Over half (57%) of those aged 18-24 have no money saved, compared to 35% of 55–64-year-olds.
- Darlington Building Society is urging Brits to start saving little and often to secure their financial futures as household finances continue to fluctuate.
A staggering 40% of Brits have no savings in the bank, and only 13% have at least one month’s salary saved, according to new research.
Darlington Building Society, one of the top 20 largest building societies in the UK, asked over 1,200 UK adults how much they currently have in savings, excluding pensions and non-liquid assets.
According to the research, the younger generation (18–25-year-olds) have the least amount of money saved, with 57% admitting they have no savings at all. Furthermore, just 15% have less than one month’s salary tucked away in a savings account.
In comparison, 34% of those aged 55-64 have no savings in the bank, while almost a quarter (22.5%) have more than their annual salary saved.
The data shows that 31% of Brits aged 65+ have more than their average salary (pre-retirement) saved for a rainy day.
Vicky Reynal, financial psychotherapist and author of Money on your Mind: the psychology behind your financial habits, comments on the findings: “The UK’s cost-of-living crisis has left a significant proportion of the population struggling to save or even forced to abandon savings altogether, as rising costs consume what little surplus might have once gone into savings accounts.
“For younger generations, especially, the long-term financial milestones —like buying a house or saving for a wedding—can seem out of reach. This has led to a phenomenon some call “doomsday spending,” where young people adopt a “spend now, save never” attitude, choosing to focus on enjoying their money in the moment rather than saving it for a future that feels uncertain.”
Tom Crossley, Head of Products at Darlington Building Society, said: “It’s not wholly surprising to learn that the older generation have healthier savings balances. With more time to build up their savings, and some arguably favourable economic circumstances in years gone by. For example, the average house price was four times the average salary in the 1990s, compared to 8.8 times the average salary today. Those 65+ have typically avoided large student debts, which is a common barrier for young savers today, particularly following the news of increased tuition fees announced this month.
“It’s understandable that the younger generation are finding it difficult to save money, with those long-term goals feeling out of reach in the current climate. However, not having any savings at all poses a risk. Not only are you not prepared for a financial emergency, which could be anything from a broken boiler to losing your job, but it has a knock-on effect on your mental wellbeing through worrying about what may be around the corner.
“Following the announcement of an increase in the National Minimum Wage, we hope young people will begin to feel like they can start their own savings pot with that little bit extra in their pocket. However, with businesses needing to meet the demands of wage increases and the additional tax pressures announced for some businesses, there could still be fluctuations in household budgets as goods and services costs could increase to offset those rising overheads. We want to encourage people to get into the habit of saving little and often, where possible, to build a savings habit. Once something becomes a habit it is more likely to be sustained even in the face of changing economic circumstances.”
Darlington Building Society offers free financial wellbeing reviews in its branches, or you can speak to an expert on the phone. The reviews help to empower people to make sure their savings are working as hard as possible, in the right account(s) for their needs, goals, and circumstances.
To support young savers, Darlington Building Society works closely with WizeUp Financial Education. To date, the Society has delivered financial education sessions to over 1,700 pupils, helping to support healthy savings habits and better money management for future generations. You can read more here: WizeUp Financial Education – Financial, Education, Charity
