According to research conducted by Toluna and published in Yahoo!Finance, Britons are very concerned about financial security. Some 65% of Brits have some anxieties, with as many as 42% unsure about making purchases and 23% worried about their jobs.

In addition, since 2020, the FCA (Financial Conduct Authority) has reported that for 7.8 million British people dealing with their bills is a heavy financial burden, and this figure has increased by about 2.5 million since 2020.

This certainly paints a critical picture for many Britons, but most still feel confident in managing their finances and, indeed, the focus on savings and investment assets is high.

A snapshot of the British financial situation

Usually, British men reach control of their finances at around age 31, a full four years earlier than women. However, attitudes towards money and saving appear to differ according to age and financial situation.

How much do the British have in savings at every age? In general, understandably, young people have fewer savings than adults, as they are struggling with student loans, low wages and high spending on study and entertainment, while the amount of British people’s savings increases with age.

Indeed, those close to retirement have more savings. In 2020, the average British adult saved around £6,757, people under 25 have saved just £2,481, while 40% of British in the 22-29 years old range have no savings at all.

Financial situation and savings vary not only with age but also by other factors, such as income and area of residence. Obviously, those with a higher income are able to put more money aside and thus also save more. According to the FCA research, 37% of Britons cited low salaries as a reason causing financial instability.

The same research showed that people living in the North East and North West areas of the country, which are usually more disadvantaged, are more likely to experience financial difficulties.

Monthly savings: how much the average Briton puts aside

Research conducted by Zopa has shown how, many Britons believe, constant saving is one of the key factors in gaining financial stability and affording rainy days. In fact, there is no doubt that for many Brits, the key to saving is consistency. To achieve financial goals, it is essential to set milestones, have good habits over time and choose the right financial product for your needs.

In the UK, each person sets aside approximately £105.43 per month or 8.21% of their monthly income. These figures vary according to income, age and place of residence.

However, savings also vary according to goals: for example, those close to retirement should have savings of around £19,000 for a one-person household to get a comfortable life. This means that each year, people would have to save about £7,300 to reach retirement day with about £266,000 in savings.

How the British save money

The British are careful to achieve financial stability and to set aside a nest egg for the future. Many, in fact, many people choose to ‘save before they spend‘ and thus set aside a portion of their salary to have a defined amount to spend per month. Today, thanks to a variety of smartphone applications, this can be done quickly and easily.

Some, on the other hand, choose to put their savings in financial products that have withdrawal limits, so that they cannot easily draw on them.

Especially when approaching retirement age, which in the UK is 65, many Brits tend to eliminate their larger debts, such as loans and mortgages, or look for solutions with a lower interest rate. If you have several debts, one option is to repay them through a consolidation plan: in this case, it is better to hire a financial advisor to choose the best solution, because you can reduce your monthly expenses, but you could have more in interest to pay over the long-term.

Many citizens also have the opportunity to save on taxes and obtain tax reliefs or deductions. In some cases, there are also benefits granted by the U.K. Government, such as the Help to Save programme, universal credit and support for energy expenses, which can be useful for saving money and reducing monthly outgoings. However, most of these benefits are reserved for people that have low incomes.

Enter your email address for FREE tips, offers and freebies straight to your inbox.