One in eight Britons have more than £50,000 in savings… how do YOU compare?

How much do you hold in savings compared to others in your age group or income level?  

Many of us, consciously or not, find ourselves comparing our lot to that of our neighbours and friends when it comes to lifestyle: house, car, holidays and possessions – but savings squirreled away in savings accounts and investments is a different beast entirely. 

With a high cost of living in recent years, we often hear about emergency funds, investments and where to find the best interest rate for your savings, but are you leading the pack when it comes to financial resilience, or are you slipping behind?

Where it actually matters, how do you really compare with your peers?

Below, This is Money breaks down data from the Department for Work and Pensions, revealing how much of your money you should be saving and where you should be putting it, based on your age, salary and marital status.

How do you compare? Figures from the DWP reveal how much your peers are saving and investing

How much should you have stashed away?

It is often said that you should aim to build an emergency fund of between three and six months’ worth of your salary, in order to cope with unexpected costs.

This, in an ideal world, is the bare minimum of savings a person should have.

Of course, most of us want to build their savings far beyond this to pay for life’s milestones, and yet, 20 per cent of all Brits have no savings whatsoever, DWP data shows.

A further 28 per cent have some money stashed away, but less than £1,500. For reference, this is markedly below the £2,297 that someone on the average UK salary (just over £34,000) would take home each month after tax.

In fact, only a third of people have more than £10,000 in savings, and within this, 19 per cent have more than £30,000 stashed away.

Above £50,000 the numbers get even lower, with 9 per cent having between £50,000 and £200,000, 3 per cent between £200,000 and £500,000 and 3 per cent of Britons having £500,000 or more in their savings.

Clearly, income has a significant effect on the amount people are putting away for a rainy day.

However, many with high incomes still fall short on saving.

Around 35 per cent of people earning more than £2,000 per week had more than £50,000 saved, but 21 per cent of the group had less than £3,000 saved.

Where should your money go?

Unsurprisingly given their tax benefits, individual savings accounts, or Isas, prove the most popular way of saving, with almost a third holding their money in the accounts.

The popularity of these accounts increases with age, with just 19 per cent of 16 to 24-year-olds holding money in an Isa compared with some 40 per cent of those between 75 and 84, while 39 per cent of 65 to 74-year-olds had these accounts.

Among other ages, between a quarter and third have Isa accounts.

While older people tend towards holding Isas, cohabiting pensioner couples are the most likely to hold Isas, with 50 per cent keeping funds in these accounts, compared to just 24 per cent of couples cohabiting with children and just 11 per cent of single parents with children.

The generational difference proves even more stark when it comes to Premium Bonds, which prove noticeably unpopular among young people. 

Just 3 per cent of those under 24 hold Premium Bonds, while 9 per cent of 25-34s do so along with 10 per cent of 35 to 44s.

Meanwhile, almost a third, 31 per cent, of those between 75 and 84 hold Premium Bonds, followed by 29 per cent of those 85 and above and those between 65 and 74.

Though investments prove more popular among young people than Premium Bonds, held by some seven per cent, the figures still pale in comparison to older generations.

Around 15 per cent of those from age 45 to 74 have some form of investments, with the older the group the slightly higher the figure.

This reaches 18 per cent among those between 75 and 84.

Higher earners prove far more likely to be investors than those earning less, with 30 per cent of people earning more than £2,000 being an investors, while more than 15 per cent of those with income over £1,000 were investors, with the number growing as earnings increase.

Of the highest earners, with income over £2,000 per week, more than half also had Isas, while almost a third had premium bonds.

Worryingly, as many as 14 per cent of single men without children have no bank accounts at all

Savings are falling short across the board

One in 10 families had less than £100 saved, according to the data, while some 18 per cent had only saved between £100 and £1,500.

Those suffering the most were single parents, with 34 per cent of the group having no savings, while 25 per cent of those parent alone had less than £100.

A further 23 per cent had between £100 and £1,500, meaning that just 18 per cent of single parents had more than £1,500 in a savings account.

Meanwhile, for co-habiting couples with children, some 29 per cent had between £100 and £1,500.

Carol Knight, chief executive of TISA, said: ‘These findings highlight the continued squeeze many families are feeling on their finances. For some, saving or investing simply isn’t a priority. 

‘However, setting aside even a small amount regularly can help build that financial buffer and improve long-term financial wellbeing.

‘Access to effective financial education is also crucial and should empower people to make informed financial decisions and understand the products available which can help them build savings. 

‘The Government’s Help to Save scheme is a great example and could be a very beneficial resource for low-income households looking to build savings. 

‘However, it continues to be underused.’

She added: ‘Other positive steps to help more people save include introducing payroll savings schemes, which could help get millions more to save regularly, and reviewing pension adequacy to ensure automatic enrolment gets people saving enough for their future retirement.’

Almost all adults have a bank current account, some 92 per cent in fact.

Worryingly, as many as 14 per cent of single men without children have no bank accounts at all, while nine per cent of UK families also have no bank accounts.

For savings, the figures are worse. As few as 11 per cent of single parents have an Isa, while as few as nine per cent of all adults hold stocks and shares.

Historically, investing has delivered better returns than holding cash savings, but investors should only invest where they can afford to leave their money untouched for at least five years.

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