As we head into a new year, it’s a good time to think about how much money we’re aiming to save. Whether you’re making a resolution to improve your finances, or you’re worried about the economy heading into 2025, we’ll all be keeping an eye on our wallets to make sure we don’t overspend.
But how far ahead do Britons plan with their savings? What are they saving for, who is saving the most and how are they doing it? To find out, we conducted a survey to find out how Britons are planning to put money aside in 2025. Our questions were answered by 2,000 people around the country, and across all age groups. Here’s what we found about Britain’s 2025 saving goals.
Most Britons aren’t sure how much money they want to save in 2025
Our first question asked how much money Britons are planning to save in 2025. Here, a quarter of people claimed they have no specific goal in mind for their savings.
Behind this, 21% said they’re aiming to save between £1,001 and £5,000, with the average amount of money Britons plan on saving coming out at £4,772.42.
A total of 7% of Britons said they’re not aiming to put any money into savings in 2025, but the same percentage were aiming for more than £15,000.
When asked how they planned to save, the most common answer was putting money aside from work or pensions, with 40% of Britons doing so; 30% are aiming to cut back on their expenses, 21% planned to invest their money and 16% are hoping to take on a second stream of income or a side hustle to earn extra cash.
The most common reason for reserving money was for general savings, with almost a third of Britons putting money aside for convenience. The other biggest aims were travelling, building emergency funds and retiring.
Two thirds of Britons said that they have easy access savings accounts to grow their finances, while just under half owned ISAs. Meanwhile, 7% of Britons surveyed said they had no savings account.
High cost of living is the number one listed obstacle for saving money, with 31% labelling it their biggest barrier to keeping on top of their savings, and a quarter of those surveyed said that low income was their main issue. Almost one in five people said that they had nothing preventing them from saving more money.
Which age groups are aiming to save the most and least?
People aged 55 and over are most likely to have no plans to save money in 2025, with 23% having no goals in place - and 69% said they’re not sure how much they’ll be saving.
Most aged 18-24 kept their goals small, with just over a quarter aiming to save between £251 and £1,000, but 8% want to save between £10,000 and £15,000. The most common goals for 25– to 34-year-olds is between £5,001 and £10,000, with 29% listing a number in this range.
Savers aged 45-54 are most inclined to be cutting back on expenses (38%), while those aged 65+ are the least likely to know how they’d reach their savings goals - as 30% said they’re unsure of their plans.
More than half of 18- to 34-year-olds are planning to start a side hustle for extra income (58%), while 17% said they’ll be getting financial help from friends and family. Meanwhile, 26% said they’ll be cutting back on holidays.
Almost 40% of 35– to 44-year-olds said they’ll be making general savings, while 18- to 24-year-olds are most likely to save for travelling - with a quarter planning to keep money aside for trips and 12% aiming to buy a car.
A total of 13% of 25–34-year-olds said their savings are reserved for buying a house, while, perhaps unsurprisingly, 28% of 55– to 64-year-olds said they’re saving for retirement.
Meanwhile, 35- to 44-year-olds are the age group worst affected by high living expenses – 43% say it’s their main barrier to savings, and one in 10 claim they have debt preventing their savings.
Almost 40% of 18– to 24-year-olds said low income was stopping them from saving, while 11% said they lacked the financial knowledge.
Finally, 45– to 54-year-olds are the most likely to report having no savings accounts, with 9% living without one. The most common generation to have accounts is the 55- 64 age bracket, with more than three quarters having easy access savings accounts and 60% owning ISAs.
Which UK regions are saving the most (and least)?
The area with the highest average planned savings is the North West, with goals levelling out at £5,633.16 in savings for 2025. In comparison, Northern Ireland’s average planned savings sits at just £3,795.95.
The East Midlands had the most respondents who aren’t planning any savings at all (14%), while London and the North West saw the most people aiming to save more than £15,000 (11%). The South West is the most unsure of savings amounts, with more than a third of respondents unsure of their goal.
When it comes to plans on how to save, Northern Ireland residents are by far the most likely to invest their money for savings, almost doubling the national average. Londoners are the most likely to plan a side hustle – 22% of respondents from here are actively seeking a second source of income.
Almost a quarter of people from the North East are planning to put savings towards travel, and 13% plan to buy a house - making this the most common area for both. Meanwhile, 13% of people in Yorkshire and the Humber are putting money aside for retirement, while Scotland has the highest rate of savings to pay off debt, with 11% aiming to do so.
The East of England is the area with the most savings accounts, with nearly three quarters of residents having easy access accounts. In contrast, Northern Ireland has the highest rate of people with no savings accounts, at 12%.
Finally, Londoners are the most likely to complain about high living expenses (36%), but the South West highlighted low income more than any other area (30%). At the other end of the spectrum, almost a quarter of people in the East of England said they have nothing getting in the way of them saving more money.
How can I save money in 2025?
We know how much Britons are typically hoping to save in 2025, but are there any steps you can take to top up your own savings next year?
1. Take stock of your current situation
Before you can start saving effectively, you need to take stock of your current financial situation. Set aside time to review your bank statements, making note of any regular incomes and outgoings. This way, you can be realistic about the amount of money you can afford to put away each month.
2. Identify your savings goals
Whether you’re putting away money for retirement, to travel or to buy a house – or if you just want to start saving more generally – setting a specific target could keep you on track. Dividing this by the amount of money you can afford to put aside each month could also provide a rough estimate of how long it will take to reach your goal.
3. Choose the right account(s) for your needs
There are many different types of savings accounts to choose from which can each suit a variety of needs and circumstances.
- Easy access savings accounts are among the most flexible as they allow you to add to and withdraw from your pot as often as needed. However, these accounts offer variable interest rates that can change with little notice.
- Those wanting a guaranteed interest rate and who are willing to lock away their cash for a length of time could instead opt for a fixed bond. But, before applying for one of these accounts, bear in mind making regular additions and accessing your cash before the term ends are both usually prohibited.
- For help forming a savings habit, you could consider a regular savings account. These accounts typically offer some of the highest interest rates on the market in exchange for imposing a strict set of criteria – such as how much and how often you can add to your pot.
There’s no limit on the number of savings accounts you can hold, so long as you meet the conditions of each. In fact, it can be useful to have multiple accounts to save towards different goals. An easy access savings account, for example, could be a good place to build an emergency fund to cover those unexpected expenses and to prevent you from dipping into your longer-term savings.
4. Remember: Loyalty isn’t always rewarded
The best savings account is the one that can offer the most returns on your money while still meeting any of your other requirements. Unfortunately, many savers make the mistake of letting their hard-earned cash dwindle in low-interest accounts; approximately £252 billion is sitting in UK current or savings accounts earning no interest, according to the Bank of England.
It’s good practice to regularly review your accounts and switch if higher interest rates are available. This may involve considering less-familiar brands which tend to offer better rates than their high street counterparts as they compete for custom.
Rest assured that all savings accounts featured on our charts are covered by a depositor protection scheme, meaning your money is safe should a provider go bust.
5. Read the small print
When it comes to maximising your savings, be sure to read and closely follow an account’s small print. For instance, some easy access accounts may apply a lower rate for exceeding a given number of withdrawals within the space of a year. Meanwhile, where an account’s headline rate includes an introductory bonus, be sure it still offers competitive returns once the bonus expires and consider switching if not.
6. Make the most of tax-free allowances
The Personal Savings Allowance (PSA) lets basic-rate taxpayers earn up to £1,000 in interest each year before the returns on their savings are taxed, while higher-rate taxpayers have a lower threshold of £500 to keep in mind.
If it’s likely you’ll earn enough in interest on your savings to breach the PSA, it may be worth opening an Individual Savings Account (ISA). Each tax-year, you can deposit up to £20,000 in ISAs - as per the annual ISA allowance - without needing to pay tax on any interest received.
While our survey shows some trends in different age groups and areas, it also shows how we all manage our money in different ways, and that there’s no one-size-fits-all method for growing your finances.
If you’re feeling inspired to make the most of your money in 2025, read our guides for more information that could help you save effectively. You can also compare the UK’s best savings and ISA rates by visiting our regularly updated charts.
