Brits saving 10% of income as cost-of-living pressures ease

The UK savings ratio – the percentage of personal income which is saved – increases for a second year in a row to 9.9% in 2025
The proportion of people who are financially struggling has declined slightly from last year – yet still affects nearly one in five UK adults (18%)
Men have five times more savings than women - £15,000 on average compared with £3,000 held by women – as the gender savings gap endures
Looking ahead as interest rates continue to fall, half of UK adults (50%) are concerned how further decreases in interest rates could impact their long-term savings

New Savings Tracker research from Aldermore reveals that the savings ratio – the percentage of personal income which is saved – increases for a second year in a row to 9.9% in 2025 (8.5% in 2024), with Brits saving more as cost-of-living pressures ease.

Financial stability

Nearly two out of five (38%) UK adults now describe their financial position as comfortable. There has been a modest decline in the proportion of people who are financially struggling, from 21% last year to 18% this year. With improved financial stability, almost one in five (18%) have managed to save more over the past 12 months, averaging an extra £951, although 27% reported saving less.

Gender savings gap

The Savings Tracker highlights a significant gender disparity in savings. Men who saved more set aside an additional £1,500, compared to women who saved an extra £750.

While the average UK adult has about £7,500 in savings, men have on average £15,000 compared with £3,000 for women—a fivefold difference. Men who increased their savings added an extra £1,500, whereas women saved an additional £750 on average.

Impact of falling interest rates

As interest rates continue to fall, half of UK adults (50%) are concerned about how further decreases could impact their long-term savings.

Alex Myers, Director of Savings at Aldermore said:

“Falling interest rates bring a welcome relief for borrowers and a timely opportunity for savers to revisit their position and ensure they have the right strategy in place. Our research shows a persistent gender gap in savings, which remains a concern. At Aldermore, we’re committed to making savings work better for everyone – and that means empowering all savers with tailored products and financial education to help close this divide. Despite the declining rate environment, our competitive Fixed and Access options ensure every customer can find the right solution to keep their money working effectively for them.”

Aldermore’s top tips for building a savings fund:

Check where your savings are currently being held – A recent fall in interest rates means you should be looking around for the best rates; the worst thing you can do is earn nothing at all. Compound interest can add up over time, so it’s worth investing an hour or two to shop around for the right savings product.
Don’t just put aside loose change, try and save a set amount each month– Rather than only putting aside the money you have left over at the end of the month, try to save a set amount regularly and consistently. Track your savings to ensure you’re sticking to your goals.
Cut down on unnecessary spending – We all deserve a treat now and again, but unnecessary spending habits may be sabotaging your savings. Small changes over time, such as making your own coffee or lunch a few days a week, can add up.
Cancel direct debits which drain your savings potential– Car insurance and gym memberships are two types of payments which are often cheaper if you pay yearly, instead of monthly. While you will need a lump sum to pay in one chunk, you will be able to save money in the long run.
Review your savings habits regularly– If you’re having difficulty meeting your target amount, reduce your monthly contributions to make it more manageable. If you receive a pay rise, a financial gift or find your monthly outgoings are reduced, consider increasing these contributions.

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