One in four young Britons have less than £500 saved, according to a recent survey by NatWest, which also revealed plans to boost savings habits among young adults. The study showed that a significant number of adults aged 35 and under do not have an emergency savings fund, with a third of them having no savings at all. The research found that 15% of respondents focus on short-term plans or activities, adopting a ‘You Only Live Once’ attitude towards their finances instead of prioritising long-term objectives like retirement.
Despite the savings deficit, three-quarters of those surveyed expressed intentions to save more in 2025 compared to the previous year. Young savers aim to accumulate an average of £3,775 over the next year and hope to have saved a total of £19,920 within the next five years. Nearly half of those polled cited a lack of disposable income as a barrier to saving more, along with economic uncertainty and the need to repay debts. Consequently, many rely on work bonuses or family gifts to boost their annual savings.
When it comes to long-term savings such as pensions, the survey revealed that 45% are not actively setting money aside for retirement, aside from contributing to a workplace scheme. The research, commissioned by NatWest, also highlighted that 17% of respondents do not plan to start saving for retirement for at least another 10 years. NatWest’s savings expert, Mo Watt, pointed out that one in ten people often struggle with knowing where to begin when it comes to saving, which can be intimidating.
NatWest has rolled out a new initiative called ‘Couch to Cash: The £5K Challenge’ to encourage young adults to improve their monthly saving habits. The bank has enlisted Olympic champions Alistair and Jonny Brownlee to kick off the initiative. Alistair Brownlee mentioned that breaking down a challenge into smaller steps can make it feel more achievable, as both he and his brother, Jonny, have always believed in starting small to work towards bigger goals. Jonny emphasised the importance of setting personalized saving targets and planning the steps needed to achieve them.
In support of the initiative, NatWest’s Mo advised customers to start small today to plan for tomorrow, urging them to use the Savings Goal Tool to take more action towards their financial goals. The research sheds light on the financial challenges faced by young Britons and underscores the importance of cultivating healthy saving habits early on to secure a stable financial future.
The survey results reflect a broader trend of financial insecurity among young adults, highlighting the need for improved financial education and support. Initiatives like NatWest’s ‘Couch to Cash: The £5K Challenge’ aim to empower young savers to take control of their finances and build a more robust savings foundation. By promoting small, manageable steps towards savings goals, individuals can develop a sustainable savings habit that will benefit them in the long run. As economic uncertainties persist, cultivating a culture of saving and financial responsibility becomes increasingly vital for individuals to navigate future challenges and achieve their financial aspirations.