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# Average UK Savings 2026: How Much Do People Have?
- URL: https://www.kaeltripton.com/average-uk-savings/
- Published: 2026-04-07T19:43:04.000Z
- Updated: 2026-11-02T15:21:55.000Z
- Author: Chandraketu Tripathi
- Tags: Money, banking, Savings, Hub: Banking & Savings

| What is the average UK savings balance?Median household net financial wealth in Great Britain was £10,400 in April 2020 to March 2022, according to the latest ONS Wealth and Assets Survey round. However, this average is heavily skewed by a small number of high savers - the median savings balance (the midpoint, where half of households have more and half have less) is reported by ONS as median household net financial wealth: £10,400 in Great Britain for April 2020 to March 2022.**Median household net financial wealth, Great Britain: £10,400 (ONS, April 2020 to March 2022). 18% of UK families had no savings in 2024/25 (DWP Family Resources Survey). Source: ONS Wealth and Assets Survey, April 2020 to March 2022.**Average UK savings by age groupAge groupAverage savingsMedian savings16 to 24£2,300£80025 to 34£6,500£2,10035 to 44£13,000£4,50045 to 54£22,000£8,00055 to 64£28,000£11,00065 and over£35,000£14,000Illustrative estimates, not published ONS figures; the latest ONS Wealth and Assets Survey round covers April 2020 to March 2022\. Excludes pension savings.Average UK savings by income bandAnnual household incomeMedian savingsUnder £15,000£500£15,000 to £25,000£1,800£25,000 to £40,000£4,200£40,000 to £60,000£9,500£60,000 to £100,000£21,000Over £100,000£55,000+What is a good savings balance?Financial advisers typically recommend maintaining an emergency fund of 3 to 6 months of essential expenses - for the average UK household with monthly outgoings of around £2,000 to £2,500, this means £6,000 to £15,000 in easy-access savings. Beyond the emergency fund, additional savings should be invested for long-term goals.Savings goalTarget amountAccount typeEmergency fund (3 months)£6,000 to £8,000Easy-access savings account or ISAEmergency fund (6 months)£12,000 to £15,000Easy-access savings account or ISAHouse deposit (10%)£27,000 on UK average priceLISA + high-interest savingsShort-term goal (1 to 3 years)Specific target amountFixed-rate bond or notice accountLong-term growth (5+ years)Invest, not saveStocks and Shares ISA or SIPPWhy do so many UK adults have no savings?Rising living costs - housing, energy, and food have absorbed income growthStudent debt - younger adults carry significant loan balancesLow wages relative to housing costs - especially in London and South EastIrregular income - gig economy and zero-hours contracts make consistent saving difficultLack of financial education - many adults were not taught to save automaticallyVerdictAim for 3 to 6 months of expenses - then invest the restIf your savings are below the median for your age group, focus first on building a 3-month emergency fund in an easy-access account. Once that is in place, switch additional saving into a Stocks and Shares ISA or pension for long-term growth - cash savings lose value to inflation over time.Savings questions answeredChecked 29 October 2026 against the sources listed.How much should I have in savings?MoneyHelper, the government-backed guidance service, describes a rule of thumb of three to six months of essential outgoings kept in an instant access savings account. On essential spending of £1,000 a month, that is £3,000 to £6,000.How much do UK households have in savings?18% of UK families had no savings in 2024/25, a further 9% had under £100 and 19% had £100 to £1,500, so 46% had less than £1,500 (DWP Family Resources Survey, published 26 March 2026). 20% had £30,000 or more, rising to 50% of pensioner couples. The latest ONS Wealth and Assets Survey round put median household net financial wealth in Great Britain at £10,400 for April 2020 to March 2022.How much are you allowed to have in savings?There is no legal limit on savings. For Universal Credit, savings, money and investments must be £16,000 or less; above £6,000 the payment is reduced by £4.35 for every £250 (or part of £250) between £6,000 and £16,000, so £10,000 in savings reduces Universal Credit by £69.60 a month (calculation). The FSCS protects deposits up to £120,000 per person at each authorised bank or building society from 1 December 2025.How much savings interest can be earned tax-free?The Personal Savings Allowance is £1,000 for basic rate taxpayers, £500 for higher rate and nothing for additional rate. The starting rate for savings gives up to £5,000 more tax-free if other taxable income is under £17,570\. The ISA allowance for 2026/27 is £20,000\. Budget 2026 raises the tax rates on savings income to 24%, 44% and 49% from 6 April 2027.Sources: [MoneyHelper: emergency savings](https://www.moneyhelper.org.uk/en/savings/types-of-savings/emergency-savings-how-much-is-enough?ref=kaeltripton.com); [DWP Family Resources Survey 2024 to 2025](https://www.gov.uk/government/statistics/family-resources-survey-financial-year-2024-to-2025/family-resources-survey-financial-year-2024-to-2025?ref=kaeltripton.com); [ONS Total wealth in Great Britain, April 2020 to March 2022](https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/totalwealthingreatbritain/april2020tomarch2022?ref=kaeltripton.com); [GOV.UK Universal Credit eligibility](https://www.gov.uk/universal-credit/eligibility?ref=kaeltripton.com); [GOV.UK Universal Credit: what you'll get](https://www.gov.uk/universal-credit/what-youll-get?ref=kaeltripton.com); [Bank of England: FSCS limit to £120,000](https://www.bankofengland.co.uk/news/2025/november/pra-confirms-fscs-deposit-limit-to-be-increased-to-120000-from-1-december?ref=kaeltripton.com); [GOV.UK Tax on savings interest](https://www.gov.uk/apply-tax-free-interest-on-savings?ref=kaeltripton.com); [GOV.UK Individual Savings Accounts](https://www.gov.uk/individual-savings-accounts?ref=kaeltripton.com); [HM Treasury Budget 2026](https://www.gov.uk/government/publications/budget-2026-document/budget-2026-html?ref=kaeltripton.com)Frequently asked questionsHow much should I have in savings at my age?A common rule of thumb: by age 30, aim for 1 year of expenses saved; by 40, 2 to 3 years; by 50, 5 years. In practice, most people focus on an emergency fund first (3 to 6 months expenses) and then invest additional savings rather than holding more in cash.What percentage of income should I save?Standard advice is to save at least 20% of take-home pay - split between pension, ISA, and accessible savings. Many financial advisers use the 50/30/20 rule: 50% on needs, 30% on wants, 20% on saving and debt repayment.Where should I keep my savings in the UK?Emergency fund: easy-access savings account or flexible Cash ISA. Medium-term goals: fixed-rate bond or notice account. Long-term: Stocks and Shares ISA or pension SIPP. Avoid holding excessive cash long-term - inflation erodes purchasing power.Is £10,000 in savings a lot in the UK?£10,000 is close to median household net financial wealth in Great Britain (£10,400, ONS, April 2020 to March 2022) and represents a solid emergency fund for most people. It is not a large amount in absolute terms - a fully funded emergency fund for a dual-income household might be £15,000 to £25,000. |
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