As we approach a new year, many will be setting financial resolutions and looking to tighten their budgets.
From ambitious savings goals to strategies for cutting back, Britons are focused on keeping their finances in check.
But how far ahead are people planning? What motivates their savings, who is leading the way and how are they managing it?
To answer these questions, Moneyfactscompare.co.uk surveyed 2,000 people across the UK, spanning all age groups, to uncover Britain’s 2025 savings goals.
The data revealed a quarter (25%) of respondents aren’t sure how much money they want to save next year. However, 21% are aiming to save between £1,001 and £5,000, with the average amount coming out at £4,772.42. A further 7% aim to save more than £15,000.
When asked about how they’re planning to reach their saving goals:
- Two in five (40%) will be putting money aside from work and pensions
- One in three (30%) will be cutting back on expenses
- Less than a quarter (21%) will be investing their money
- Over one in six (16%) will be starting a side hustle
When looking into what Britons are saving money for, almost two thirds (31%) of respondents are making general savings, followed by travelling (11%), building an emergency fund (10%), retirement (10%), and buying a house (7%). However, 12% of respondents aren’t even sure what they are saving for.
Although two thirds (66%) of Britons said that they have easy access savings accounts to grow their finances, and just under half (49%) owned ISAs, high cost of living is the number one listed obstacle for saving money, with 31% labelling it their biggest barrier to keeping on top of their savings, and a quarter (25%) saying that low income was their main issue.
The age groups most and least likely to save in 2025
The age group of 55 and over stands out as the least likely to plan for savings, with nearly a quarter (23%) reporting no savings goals and 69% uncertain about their targets. For those who are saving, retirement is the primary objective (28%).
In contrast, the youngest savers, aged 18-24, are more likely to aim for modest savings goals, with over a quarter (26%) targeting between £251 and £1,000. However, a small, ambitious segment (8%) is setting sights on higher savings between £10,000 and £15,000, often with plans for travel (15%) and car purchases (12%). This group faces unique challenges, with low income (39) and limited financial literacy (11%) hindering their savings efforts.
Among 25- to 34-year-olds, savings plans grow larger, with 29% hoping to save between £5,001 and £10,000 and 13% focused on buying a house. Under a third in this age range (28%) plan to bolster their savings with side hustles, while 17% will turn to family support. However, high living costs remain a barrier for a significant portion of this group (33%).
Millennials (35-44) are largely making savings for general purposes (39%) but face substantial obstacles from high expenses (43%) and debt (10%). Despite these challenges, 60% of this group are leveraging savings accounts, with a strong preference for ISAs.
For those aged 45-54, the strategy is clear: cutting back on spending is the preferred path to meet their goals, with 38% committed to this approach. However, this group also reports the lowest access to savings accounts, with 9% not having one at all.
The regions most and least likely to save
Regional differences reveal unique strategies and challenges across the UK. Leading the pack, the North West has one of the highest average planned savings at £5,633.16, contrasting with Northern Ireland’s more modest target of £3,795.95.
Savings ambitions vary widely across regions
A total of 14% of East Midlands respondents reported no plans to save, while London and the North West have the largest share of high savers, with 11% aiming for over £15,000. The South West stands out as the most uncertain, with more than a third (35%) unsure of their savings target for the coming year.
Approaches to saving differ as well
Northern Ireland residents show the highest (41%) likelihood of investing to grow their savings, nearly doubling the national average. Londoners lead in seeking extra income, with 22% planning side hustles to meet their financial goals.
Over half (55%) of those in Northern Ireland will be saving generally, while nearly a quarter (24%) in the North East intend to save for travel, with 13% putting money aside to buy a house, making it the most focused area for both goals.
Retirement savings are prioritised in Yorkshire and the Humber, where 13% are focused on their future, while Scotland leads in saving to pay off debt, with 11% setting this as a priority.
When it comes to savings account ownership
Nearly three-quarters (72%) of East of England residents hold easy access accounts, while Northern Ireland has the highest rate of those without any savings account (12%).
Regional barriers to saving also vary
Londoners are most affected by high living costs, with 36% citing expenses as a major obstacle, while low income is the primary concern for 30% in the South West. Notably, nearly a quarter (24%) of people in the East of England reported having no barriers to saving more.
How to maximise savings in 2025
Rachel Springall, Finance Expert at Moneyfactcompare.co.uk, explains how to maximise savings for the year ahead:
- Take stock of your current situation – review your bank statements to track regular income and expenses, helping you set a realistic monthly savings goal.
- Identify your savings goals – setting a specific savings target can keep you on track, and dividing it by your monthly savings amount gives a rough timeline for reaching your goal.
- Choose the right account for your needs – there are various savings accounts to suit different needs: easy access accounts offer flexibility for frequent deposits and withdrawals but pay variable interest rates which can change with little notice. Fixed bonds provide guaranteed rates if you’re willing to lock away your funds, though access is typically prohibited until maturity. Regular savings accounts encourage consistent saving with high interest rates paid on monthly deposits but some have strict deposit and withdrawal criteria.
- Consider multiple accounts – you can hold multiple accounts, allowing you to allocate funds for different goals, for instance, using an easy access account to build an emergency fund and preserve longer-term savings elsewhere. There are also Cash ISAs which are an ideal choice for those who strive to protect their savings income from tax.
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said, “Our survey sheds light on how Britons are strategising their savings for the upcoming year and the many obstacles they encounter.
“It’s interesting to see side hustles and investments gaining popularity, particularly among younger savers who are navigating unique challenges.
“Regularly reviewing accounts and switching to options with higher interest rates is a wise practice and saving little and often can make a big difference over time.
“It is also essential to frequently navigate the different savings account options that are designed to help savers achieve different goals. We hope more Britons feel empowered to save in the coming year to improve their financial wellbeing.”
