How much do you want to save in 2025?
Saving Goals for 2025: A Look at How Britons Are Planning Their Finances
As we step into a new year, it’s an ideal time to reflect on our financial goals and consider how much we aim to save. Whether it’s a resolution to improve financial health or concerns about the economy, many are looking at ways to manage their budgets effectively in 2025.
But how far ahead do Britons plan when it comes to saving? What motivates them, and how are they achieving their goals? A recent survey explored the saving plans of 2,000 individuals across the UK, shedding light on Britain’s financial aspirations for 2025.
Most Britons Are Unsure of Their Savings Goals
When asked about their 2025 savings goals, a quarter of respondents admitted they had no specific targets. Among those with plans, 21% aimed to save between £1,001 and £5,000, with the national average savings goal calculated at £4,772.42.
Interestingly, 7% of Britons reported they had no intention to save, while the same percentage aimed for more ambitious targets of over £15,000. The primary methods for saving included contributions from work or pensions (40%), cutting back on expenses (30%), investing funds (21%), and generating additional income through side hustles (16%).
The most common savings purpose was general savings, cited by almost a third of respondents, followed by travel, emergency funds, and retirement planning. Despite these goals, high living costs were the most significant obstacle, with 31% identifying this as a barrier. Low income was another challenge for 25% of participants, while 19% claimed they faced no obstacles to saving.
Saving Trends Across Age Groups
Older age groups, particularly those aged 55 and above, were the most likely to lack savings plans, with 23% reporting no goals and 69% uncertain of how much they would save. In contrast, younger savers (18-24 years old) set more modest goals, with over a quarter aiming for savings between £251 and £1,000, although 8% sought to save between £10,000 and £15,000.
The 25-34 age group commonly targeted savings between £5,001 and £10,000 (29%), while those aged 45-54 focused on cutting back expenses (38%). Meanwhile, 18-34-year-olds were the most likely to pursue additional income streams, with 58% considering side hustles.
Goals varied significantly across age groups, with younger individuals prioritising travel and car purchases, while older respondents focused on retirement. Notably, 28% of those aged 55-64 said their savings were earmarked for retirement planning.
Regional Differences in Savings Goals
Regional variations in savings goals were evident, with the North West leading in planned savings at an average of £5,633.16. In contrast, Northern Ireland’s average was the lowest at £3,795.95. The East Midlands had the highest proportion of respondents with no savings plans (14%), while London and the North West had the most ambitious savers, with 11% targeting over £15,000.
Regarding saving methods, Northern Ireland residents were most likely to invest, while Londoners led in pursuing side hustles (22%). Travel was a popular goal in the North East, with 24% saving for trips, while 13% in Yorkshire and the Humber focused on retirement.
Tips for Saving Money in 2025
For those seeking to achieve their financial goals, here are some actionable steps:
- Assess Your Financial Situation
Start by reviewing your bank statements to understand your income and expenses. This helps determine how much you can realistically save each month. - Set Clear Goals
Whether saving for retirement, travel, or general purposes, having specific targets can keep you focused. Break your goal into monthly contributions for a clear roadmap. - Choose the Right Accounts
Consider different savings accounts based on your needs. Easy-access accounts offer flexibility, while fixed bonds provide higher returns for locking funds away. Multiple accounts can help manage separate goals effectively. - Review Accounts Regularly
Don’t let savings sit idle in low-interest accounts. Explore the best savings accounts and ISAs regularly to maximise returns. - Utilise Tax-Free Allowances
The Personal Savings Allowance and ISAs can shield your savings from tax. Basic-rate taxpayers can earn up to £1,000 in interest tax-free annually, while ISAs allow up to £20,000 in tax-free contributions per year.
Seeking Expert Financial Advice
If you’re unsure how to approach your savings goals, a financial adviser can help. Finding an independent financial adviser near you ensures tailored advice suited to your circumstances. Certified advisers offer services ranging from pension planning to long-term financial protection, helping clients achieve their best financial outcomes.
For those looking to find a financial adviser, comparing fees and seeking top-rated professionals can make a significant difference. An independent adviser can provide personalised advice and support, guiding you towards your financial goals in 2025 and beyond.
Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom. Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand. All rates are correct as of 16 October 2024.
