The personal savings climate in the UK has undergone dramatic changes during the past few years. These new provisions have been shaped a great deal by the economic ramifications of the coronavirus pandemic. For example, in 2020 UK households tripled their personal savings rate. Millions of people spent less during the first lockdown, thanks in part to this record shortfall. Looking at their latest figures, it paints an extremely different picture in 2025 Briton’s national financial wellbeing.
Finder reports that the average person in the UK has managed to save £16,067. Even with such a positive number, many Americans are still finding it difficult to have a safety net. Alarmingly, almost four in ten Britons have less than £1,000 saved. Taken together, this paints a picture of millions of households living paycheck to paycheck just one emergency away from financial ruin. This very disturbing statistic should set off all kinds of alarm bells. A shocking 23% of people have £200 or fewer put away.
The savings crisis is most severe for younger generations. As Bankrate notes, a shocking 18% of millennials and Generation X-ers are completely without any savings. This troubling trend is indicative of a larger problem. Approximately 16% of UK adults, just under 8.4 million, have zero savings to rely on.
The new data released by Trading Economics adds more clarity to the differences in the savings rate by demographic groups. Though many people may have succeeded in saving enough, a large share of people are still at risk for not having enough savings. Almost two in five Britons have £1,000 or less in savings. Alarmingly, a quarter of them have £200 or less in savings, revealing a readiness gap for those living on the edge of financial security.
As the economic environment shifts, the long-term impacts of these savings behaviors cannot be understated. The personal savings rate peaked during the initial lockdown, but as restrictions eased and economic activities resumed, many households faced renewed financial pressures. The gap in saving patterns is indicative of larger socioeconomic trends, with a confluence of factors affecting each generation’s capacity to save.