- Young males (aged 25-34) are saving an average of £104 each month, well above the national average of £88
- Almost two fifths (39%) of young males (16-34) have a savings goal, compared with just over a quarter (26%) of the whole country
- Nearly half (47%) of 25-34 year olds are making home related savings compared to just a quarter (25%) who are saving for a holiday or special occasion. A similar number (23%) are saving to ensure their future financial security
The findings also reveal that younger people are motivated by goals such as property and their financial security.
The data shows twenty and thirty-somethings savers (25-34 years) are looking to their future circumstances with nearly half (47%) prioritising saving for a deposit to buy a home, while just a quarter (25%) are saving for a holiday. Saving for an emergency is viewed as equally important to going abroad by young savers, with 23% saving in case of an emergency.
16-24 year olds are managing to put aside 7.8% of their monthly income, proportionally more than anyone between the ages of 25-65 years. Those between 45-54 years save just 6.7% of their take home pay each month.
The research shows these young savers are putting more aside because they are saving in a better way. While just over a quarter (26%) of the British population motivate themselves to save by using goals, over a third (36%) of all people aged 16-34 are motivating themselves to save in this way. As shown by NS&I’s Savings Survey, Britons with a savings goal save 45% more every month than those without.
John Prout, NS&I savings spokesperson, said:
“We are delighted that so many young people are mature beyond their years and saving responsibly. Setting specific targets is a good way to stay motivated, and even if it’s only a small amount being set aside each month the savings soon mount up. If you’re struggling with your finances, January is a great chance to start afresh and set achievable goals to work towards over the coming year.”
Almost a quarter (23%) of 25-34 year old savers are saving for an emergency, compared to under a fifth (19%) of 45-54 year olds. Saving for a car is another high priority for young people, with over a quarter (27%) of 16-24 year olds and 16% of 25-34 year olds saving for this purpose.
About this research
The most recent NS&I Savings Survey was conducted by TNS Omnibus, among 2,519 respondents GB respondents aged 16+ between 1 November – 7 November 2011. The survey has been running every quarter since winter 2004, and is a snapshot of how the nation is saving.
NS&I is one of the UK's largest financial providers with over 26 million customers and almost £100 billion invested. All products offer 100% security, because NS&I is backed by HM Treasury. NS&I products are available over the telephone, internet, post and by standing order. Some NS&I products are also available through a network of Post Office® branches, and our product range guide is available in over 300 WHSmith high street stores. Savings tips including a later life guide and further information on personal finance are available at: youandyourmoney.info