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  • The youngest generation of UK adults (Zoomers/Gen Z’s) faces a savings crisis; one in five (18%) have no savings and one in four (28%) are saving less than they did a year ago
  • The high cost of essentials means 27% of Gen Z’s have nothing left after paying their basic bills

 

Gen Z is facing a savings crisis, according to the latest findings from Aldermore’s Savings Tracker. Rising costs, unexpected expenses, and sky-high rent and mortgage payments have left nearly one in five (18%) with no safety-net set aside.

The latest findings reveal that rather than getting better, the situation could be worsening with over a quarter (28%) of Zoomers saving less in the past 12 months. Those that did previously save are now putting £350.50 less away than they did in the previous year.

The tracker found that after covering their costs for essential outgoings, 18% of Gen Z’s have nothing left to save  as the research shows that 14% have faced unexpected expenses, like car repairs and 16% have faced higher housing costs.

Sleepless nights for young savers

Money worries are taking their toll with 4.4 million (41% of Gen Z) losing sleep over their lack of savings. Many are even avoiding checking their bank balances altogether (43%).

Despite challenges, many Gen Z savers remain hopeful

Despite the struggles, over half (51%) of Gen Z savers feel optimistic about their financial future as inflation starts to ease.

Alex Myers, head of savings, Aldermore said: “The financial pressures on young people today are undeniable, making it harder than ever to build a savings cushion. With rising costs eating into disposable income, many are left feeling powerless over their finances. But even small, regular savings can create long-term security. Whether it’s setting aside a little each month or using tools to build better habits, taking control now can make a big difference in the future."

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Notes to editors

1 Based on 54,196,443 adults in the UK as per latest ONS survey

2 Research conducted on behalf of Aldermore bank by Opinium Research between 15th - 21st January 2025 among a nationally representative sample size of 3,000 UK adults.


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