How Much Does the Average UK Citizen Have in Savings?
This is Britain after all. The climate calls for rainy days. It only makes sense that you keep a rainy-day fund stored away. However, it’s difficult to save, since the mere concept means you have a little extra cash when you’re running low. How easy is it to justify dipping in when you’re out of petrol the week before payday?
And even if you do have a healthy saving habit that you keep up, are you saving enough? Will it cover you when the hypothetical rain pours?
According to a study done by financial firm “Finder”, in 2020 the average UK citizen was keeping £6,757 in their banks. A third of Brits had less than £600 saved, and 9% had no savings at all. The average Brit saves around £105.43 a month, although there is obviously some variation across income levels, but the average of their monthly income comes to 8.21%.
We’re taking a look at the average amount of savings that the people of the UK are putting away, and what you can do to build those savings up. Read on for all the details.
At 30 years old how much savings should I have in the UK?
As for the question of how much is enough? Well, that’s harder to answer. Ultimately there isn’t a right answer. If you’re only thinking of a rainy day right now, you won’t need as much in your savings account, but if you’re thinking as far ahead as retirement, you might want to just keep adding as much as you can spare. According to the study by Finder, Brits tend to aim for £10k to £42k for a stable retirement.
Having enough to cover you for a month of living without income would be a good place to start, which 41% of Brits don’t have.
If you’ve got something special in mind you’re looking to save for, like a wedding or holiday, you can use a savings goal calculator to figure out how much you should put away each month to reach the target you’re aiming for.
How much does an average family have in savings?
This number is mainly determined by income. Low-income households have around £95 in savings in 2021 while higher earning families are putting away an astonishing £62,885. This is a gap that has only gotten wider throughout the pandemic.
Do you have to pay taxes on savings in the UK?
To make saving a lot easier, Brits are privy to the Personal Savings Allowance, which is a pre-set allowance letting you earn interest on your savings without paying taxes. For the 2020/2021 tax year with a basic rate of 20% you can earn £1,000 in savings interest a year without being taxed. For higher-rate taxpayers at 40%, you can earn £500 and additional rate taxpayers at 45% don’t get an allowance.
This means that less than 5% of savings aren’t being taxed due to the PSA. It covers any interest from bank accounts, corporate bonds, government bonds, and gilts.