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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 group
Age group
Average savings
Median savings
16 to 24
£2,300
£800
25 to 34
£6,500
£2,100
35 to 44
£13,000
£4,500
45 to 54
£22,000
£8,000
55 to 64
£28,000
£11,000
65 and over
£35,000
£14,000
Illustrative 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 band
Annual household income
Median savings
Under £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
£21,000
Over £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 goal
Target amount
Account type
Emergency fund (3 months)
£6,000 to £8,000
Easy-access savings account or ISA
Emergency fund (6 months)
£12,000 to £15,000
Easy-access savings account or ISA
House deposit (10%)
£27,000 on UK average price
LISA + high-interest savings
Short-term goal (1 to 3 years)
Specific target amount
Fixed-rate bond or notice account
Long-term growth (5+ years)
Invest, not save
Stocks and Shares ISA or SIPP
Why do so many UK adults have no savings?
Rising living costs - housing, energy, and food have absorbed income growth
Low wages relative to housing costs - especially in London and South East
Irregular income - gig economy and zero-hours contracts make consistent saving difficult
Lack of financial education - many adults were not taught to save automatically
Verdict
Aim for 3 to 6 months of expenses - then invest the rest
If 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 answered
Checked 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.
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.
The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.
Chandraketu Tripathi
Lead Editor · Kael Tripton
Lead editor of Kael Tripton. LBS MBA (Sloan Fellow), AI/ML postgraduate (IIIT Bangalore). 22 years in marketing and commercial roles across 23 markets. Covers UK money, tax and visas.
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