The UK savings ratio – the percentage of personal income which is saved – has rebounded to 8.5% in 2024, from 6.6% in 2023. This indicates that savers in the UK are putting more money away despite cost-of-living pressures, according to Aldermore’s latest Savings Tracker2.
Brits saving more as cost-of-living pressures begin to ease
The number of people who feel financially comfortable has increased by 12 percentage points compared to last year (38% vs 26%), indicating that easing inflation coupled with higher savings rates has helped many households.
One out of four Brits (25%) managed to save more than they did the year prior, putting a further £1,855 towards their savings – overall, this equates to £24.4bn3 more being saved.
As a result, people’s savings pots have grown, with the average amount of cash savings valued at £36,096 in 2024 compared to £32,357 in 2023.
On the flip side a quarter of us saved nothing in the last year
Nonetheless, this is only part of a more complex savings picture.
While many people are managing to put more away, others are still being hindered by cost-of-living pressures. Three out of 10 UK adults (30%) saved less than the year prior, saving £1,313 less on average. Meanwhile a quarter (24%) haven’t been able to save anything at all in the last year.
Brits set their sights on boosting savings pots
It’s not all doom and gloom however, as many are optimistic about their financial future. Nearly a third of people (29%) are looking to save more money in the next year. Many are taking proactive steps to mitigate cost-of-living pressures and take control of their finances.
The most popular methods of boosting savings include shopping less frequently for non-essentials (41%), reducing spending on socialising (36%), shopping in cheaper supermarkets (35%) and using cars less and opting to walk or take public transport more often (18%).
Gen Z stashing away more money
Looking further into generational savings habits, younger savers are saving more than their older counterparts. Over a third (35%) of younger savers (defined as Millennials and Gen Z) – or 7.5 million4 – have saved more compared to the year prior, compared to just 17% – or 3.9 million5 – of older savers (defined as Baby Boomers and Gen X).
Pay rises and bonuses provide welcome boost to savings pots
Nearly two out of five (39%) Brits received a pay rise in the last year compared to just over a quarter (26%) of people in the year prior.
In addition to their basic salary, the Savings Tracker revealed that the number of people receiving a bonus has nearly doubled. In the last six months, one in five (20%) welcomed a bonus compared to just 12% the year before.
Alex Myers, Director of Savings at Aldermore, said:
“It’s encouraging to see more Brits feeling financially comfortable and putting more money aside. This is particularly impressive when we know that the last couple of years have taken their toll on our personal finances.
“However, it’s important to sound a note of caution here. Our data shows that whilst we’re putting away more as a country overall, there are still plenty of people struggling to save anything at all. Everyone should be encouraged to save if they possibly can, even in small amounts. If you’re able to put away something like £10 every month into a savings account, that regular commitment will really start to add up over time.”
**Ends**
Notes to editors
1On a nat rep survey of 3000 UK adults, 2058 are UK adults who have saved money in the past 12 months. 2058 / 3000 * 53188204 (UK adult population) = 36487108 (shorthand 36.5 million). £2274.1 * 36487107.944 = 82975332175.4504 (shorthand £83 billion).
2Research conducted, on behalf of Aldermore bank, by Opinium between 22nd December – 4th January among a nationally representative sample of 3,000 UK adults.
3On a nat rep survey of 3000 UK adults, 743 are UK adults who have saved money in the past 12 months and saved more than they did 12 months prior. 743 / 3000 * 53188204 (UK adult population) = 13172945 (shorthand 13.2 million). £1855 * 13172945.1906667 = 24435813328.6867 (shorthand £24.4 billion).
4On a nat rep survey of 3000 UK adults, 1233 are Gen Z or Millennial, 437 of them have saved money in the past 12 months and saved more than they did 12 months prior. 437 / 1233 * 21115716.988 (UK Gen Z and Millennial population, 18+) = 7483835 (shorthand 7.5 million
5On a nat rep survey of 3000 UK adults, 1767 are Gen X or Baby Boomer, 306 of them have saved money in the past 12 months and saved more than they did 12 months prior. 306 / 1767 * 22684769.006 (UK Gen X and Baby Boomer population) = 3928432 (shorthand 3.9 million)
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