The Average UK Savings by Age: How Much Money Should You Have by Retirement

When it comes to money, many of us wonder if we are on track. How much should you have saved by 25, 30, or 50? What does the average UK saver look like at different ages? And how does this compare to your own net worth and target retirement goals? I’ve explored these questions to give you a clear picture of average savings by age in the UK, with practical insights to help you plan your financial future.

Average UK savings by age visualisation

How Much Money Should You Have at 18?

At 18, most people are just starting their financial journey. Many are in education or beginning entry-level jobs. The average savings at this age are quite low, often under £1,000. This is understandable since expenses like tuition, rent, and daily costs take priority.

What to focus on at 18:

• Build a habit of saving, even if it’s just £20 a month.

• Open a savings account or start a cash ISA.

• Avoid unnecessary debt, especially high-interest credit cards.

  
  

While the average net worth is minimal, this stage is about laying the foundation for future financial growth.

Savings by Age 25: Early Career and Building Momentum

By 25, many have moved into full-time work and started earning a steady income. According to recent UK data, the average savings for this age group hover around £3,000 to £5,000. This includes cash savings, pensions, and investments.

Key points for 25-year-olds:

• Aim to have an emergency fund covering 3 months of expenses.

• Start contributing to a workplace pension, especially if your employer matches contributions.

• Set clear financial goals, such as saving for a deposit on a home or paying off student loans.

  
  

At this stage, your net worth is still modest, but consistent saving and investing can accelerate growth.

Age 30: Increasing Savings and Planning for the Future

By 30, the average UK saver has around £10,000 to £15,000 in savings and investments. This includes pension pots, which tend to grow steadily thanks to compound interest.

What to consider at 30:

• Review your pension contributions and increase them if possible.

• Diversify your investments beyond cash savings.

• Set medium-term goals like buying property or starting a family.

  
  

This is a critical age to align your savings with your target retirement goals. The difference between saving a little and saving smartly becomes clear here.

Age 35: Midway to Retirement, Time to Accelerate Savings

At 35, the average savings in the UK rise to approximately £25,000 to £30,000. Many people start to feel the pressure of balancing mortgages, family costs, and career growth.

Advice for 35-year-olds:

• Maximise pension contributions to benefit from tax relief.

• Consider additional investments such as ISAs or stocks.

• Keep track of your net worth regularly to stay motivated.

  
  

This is the time to evaluate if you are on track to meet your retirement goals or if adjustments are needed.

Age 40: Building Wealth and Preparing for the Long Term

By 40, average savings jump to around £50,000. This includes pensions, property equity, and other investments. The focus shifts to wealth building and protecting assets.

Financial tips for 40-year-olds:

• Review your investment portfolio for risk and growth balance.

• Plan for children’s education costs if applicable.

• Consider estate planning and wills.

  
  

At this stage, some people start to approach high net worth individual (HNWI) status, especially if their investments and property values have grown significantly.

Age 45: Approaching Peak Earnings and Savings

By 45, many UK savers have accumulated around £75,000 to £100,000. This is often the peak earning period, so it’s a prime time to boost savings aggressively.

What to focus on at 45:

• Maximise pension contributions to catch up if behind.

• Use tax-efficient savings vehicles.

• Reassess your target retirement goals and timelines.

  
  

This is a crucial checkpoint to ensure your net worth aligns with your desired retirement lifestyle.

Age 50: Final Stretch Before Retirement Planning

At 50, average savings in the UK tend to be between £120,000 and £150,000. Many people start seriously planning for retirement, considering when and how they want to stop working.

Key actions at 50:

• Get a detailed pension forecast.

• Consider downsizing or other property strategies.

• Plan for healthcare and long-term care costs.

  
  

This is the time to make sure your savings and investments will support your retirement goals comfortably.

Into Retirement: What Does the Average Look Like?

When people retire in the UK, the average pension pot is around £60,000 to £80,000, but this varies widely. Many retirees also rely on the state pension, property equity, and other savings.

Retirement considerations:

• Understand your income sources: pensions, investments, state pension.

• Plan withdrawals carefully to avoid running out of money.

• Consider part-time work or other income streams if needed.

  
  

Reaching retirement with a solid net worth that meets your goals requires consistent saving and smart planning throughout your life.

How to Use This Information to Reach Your Financial Goals

Knowing the average savings by age helps you benchmark your progress. If you’re behind, it’s never too late to start saving more or investing wisely. If you’re ahead, you can consider more ambitious goals or early retirement.

Some practical steps:

• Set clear, realistic savings targets for each decade.

• Track your net worth regularly.

• Adjust your spending and saving habits to stay on course.

• Seek advice if you want to become a high net worth individual (HNWI) or accelerate wealth building.

  
  

Remember, averages are just a guide. Your personal goals and circumstances matter most.