As time goes by, saving becomes a more important part of our lives. Whether it’s for your kids, your retirement, or an upcoming large purchase, having money set aside is essential.
With the rise of social media and influencers sharing only the glamorous sides of their lives, the old mentality of ‘keeping up with the Joneses’ is now more prevalent than ever. But is this a true representation of real life?
Different people save in different ways, and because people don’t often talk about money, it can be tricky to know how much you should have saved at any time. So, in this blog, we’ll reveal the true stats.
However much you have, remember, you’re never too old to start saving and creating good habits. You can get started today!
Your 20s are all about being young, fun, and free, but let’s be honest, fun isn’t always free. Setting a substantial savings goal in your early 20s can be difficult, especially if you have been in higher education during the rising cost of living.
So, how much could you have in savings? Well, according to a survey by Finder, the average amount of savings for an 18 to 24-year-old in the UK is £3,636.
These savings can be made through full-time work or part-time jobs alongside further study. Indeed reports the average salary for a 16 to 17-year-old is £9,969 and £20,437 for people aged 18 to 21. However, you don’t pay income tax up to £12,570 and pay 20% between £12,571 and £50,270.
By the time you reach your 30s, if you started work after your GCSEs, you will have amassed 14 years of work experience, and your pay will have hopefully increased.
The average salary between 22 and 29 years old is £29,120 and the survey found the average savings for a 25- to 34-year-old to be £3,748.
Why is this? Well, lots can happen in 10 or more years – especially between the years of 30 and 40 years old. Buying your first house, purchasing a car, having kids… on average, your 30s are the years that everything happens. So, although you may have brought more money home, you’ve probably spent more too.
According to the Office for National Statistics, the average age of a mum giving birth in the UK is now 30.9 years and 33.7 for new dads. So, if you decide to have children, it’s important to consider the cost of raising them throughout your 30s and beyond.
It costs £233,256 to raise a child to 18 in the UK, which works out to £12,959 per year for 18 years.
To meet this target by the time you’re 40, you’ll need to be putting away an additional £1,079 per child per year.
In your 40s, you should continue to save – it’s beneficial to aim for about 20% of your income. However, by this age, you’re likely to be earning quite a bit more money than you did when you were in your teens, 20s, or 30s.
According to Indeed, the average salary of a person aged between 40 and 49 is £39,491. However, there are always surprise expenses or life changes such as moving home, so averages suggest people in their 40s usually end up with around £10,000 in savings.
The average salary for people aged between 50 and 59 is lower than for people aged 40 to 49 at £36,834.
However, as you get older, it’s more important that your money works for you to secure your retirement and support your children into adulthood. So, with savvy saving, the UK average for a 55 to 73-year-old is £18,245.
So, are you an average saver?
To truly reach your savings goals, be they inspired by age or life goals, you’ll need a savings provider you can depend on. For that, look no further than Aldermore.
Since 2009, we’ve been supporting our customers to make saving the habit of a lifetime. It’s never too late to start saving, you can explore our personal savings accounts and start making the most of your money.