How much should I have in savings?

Knowing how much you should have in savings depends on what you’re saving for and where you are in life. For example, an emergency fund should be enough to cover a few months of living expenses, while saving for retirement calls for a much larger pot. On this page, we’ll look at common UK savings benchmarks by age and income, and how much you might put away for different savings goals.

The information provided here is for informational and educational purposes only and does not constitute financial advice. Please consult with a licensed financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.

For some people, setting savings goals by age can be motivating – especially when it comes to planning for milestones like retirement. It can also be interesting to see how your savings compare with the UK average.

Some guidelines suggest saving multiples of your annual income to maintain your standard of living in retirement. The first target is to build savings equivalent to roughly one year’s salary by age 30. This figure isn’t just cash savings – it also includes workplace and private pension pots.

This table shows commonly used savings benchmarks by age, based on the average UK income of £39,039 in 2025*. These are broad industry benchmarks, not personalised targets. The amount you may need depends on your income, retirement age, lifestyle expectations, tax position, and investment performance.

Life doesn’t always go to plan. A sudden loss of income, a broken boiler, or any unexpected expense can come along when you least expect it. Having enough saved in an emergency fund gives you a financial cushion so you can handle these situations without going into debt.

Most experts recommend saving three to six months’ worth of essential expenses. If you are self-employed or retired, you might aim for 12 months or more if your income is lower or less predictable.

To calculate the ideal amount for your fund, start by listing your essential monthly living costs, for example:

• Rent or mortgage: £1,000

• Utilities (electricity, water, gas): £150

• Food shopping: £200

• Transport (fuel/public transport): £100

• Insurance: £100

• Phone/internet: £65

Total monthly expenses = £1,615

Based on this, you’d aim for an emergency fund of £4,845 to £9,690 (between three and six times your monthly expenses).

Some people choose an easy access savings account for emergency funds as they allow withdrawals without notice (but always check terms and withdrawal conditions).

Saving 10 times your salary by retirement is a commonly-cited benchmark and can give you a rough idea of how much you might need. However, this is a broad metric and your personal target will depend on what kind of lifestyle you’re aiming for and the annual income you’ll need to maintain it.

A study on retirement living standards from Pensions UK reveals the yearly income required for a single person to enjoy different retirement lifestyles:

*https://media.quilter.com/search/pension-pot-needed-for-a-comfortable-retirement-falls-to-682000/

These estimates assume you receive the full UK state pension and plan to use your savings to supplement it.

You can compare these figures with your current savings and pension pots to help you understand how they differ from commonly cited benchmarks. This may give you an indication of whether early retirement could be achievable, depending on your personal circumstances. A pension calculator can help with this process.

Once you’ve put aside some emergency savings, you might want to focus on saving for your next big financial goal. Whether you’re looking to save for a car, a wedding, or a nice holiday, having the entire amount saved up in advance can avoid reliance on loans or finance. 

The amount you’ll need to save will depend on the total cost, and when you’ll need the money. One idea is the sinking fund method, where you put a cost and target date against the upcoming purchase. You then divide the total cost by the number of months until you need the item. So if you’re planning to buy a £15,000 car in twelve months’ time, you’d need to save £1,250 each month. Depending on your time horizon, some people consider fixed rate bonds as well. These typically require you to lock money away for a set period.

If you’re saving for a house deposit, you could start by considering how much you can afford for monthly mortgage payments, as this will help determine your price range for a home and, in turn, the deposit required. Deposits are at least 5% and usually 10% or more of the house price, so if you have your sights set on a £300,000 home, you’d need to save at least £15,000, or £30,000 to access a wider range of mortgage products.

You can also take advantage of government-backed schemes such as the Lifetime ISA (LISA). This gives you a 25% bonus on your savings each year (up to a maximum of £1,000 annually) to help you buy your first home or save for later life. Withdrawals for reasons other than a first home purchase or before age 60 may incur a government withdrawal charge.

Learn more about saving for a mortgage.

A popular rule of thumb is the 50/30/20 rule, where you put aside 20% of your post-tax income each month. This is how it looks:

• 50% of your take-home pay goes toward essential expenses like rent/mortgages, bills, and groceries.

• 30% is for non-essentials such as shopping, leisure activities, and takeaways.

• 20% is what you save for your emergency fund, retirement, or other financial goals.

Example: monthly savings based on take-home pay of £2,500 per month:

Over a year, this adds up to £6,000, before any interest is earned.

Saving 20% is not always realistic , and some people find that necessary expenses take up most of their income. You can always adjust the ratios to fit your situation. Raisin UK has a wide range of helpful guides to saving.

Knowing how much you should have in savings is a start. The next step is to build simple habits that help you reach your savings goals. This could involve automating your savings or using money-saving apps to create dedicated pots for each goal.

Wherever you are on your savings journey, here are some ideas:

• Create a budget by listing what you’ve spent in the past three months or so and finding areas where you can cut back or save more money in future.

• Automate your savings on payday to remove the temptation to spend money before you’ve had a chance to save it. By setting up a standing order, you can choose an amount to be automatically transferred to an easy access account each month.

• Compare interest rates on savings accounts to make sure you’re getting the most out of your money. With Raisin UK, you can access a range of savings accounts, allowing you to compare rates in one place.

• Contribute to a workplace pension. If you’re employed, a workplace pension can be a tax-efficient way to save for retirement. If you’re unsure how much you’re contributing or what options are available, you can check with your employer or pension provider.
• Consider how to handle debts. If you have high-interest debt such as credit cards or overdrafts, it may be more effective to focus on paying off debt first. Under the 50/30/20 rule, the 20% can be used for debts to begin with.

From easy access savings accounts with flexible access to fixed rate bonds, where you lock your cash away for a set term in return for a competitive interest rate, you can explore a range of savings accounts at Raisin and choose one that fits your needs. Getting started is straightforward. Simply register for a Raisin UK Account, log in, and apply for your first savings account. It’s completely free. Eligible deposits are protected up to £120,000 per person, per authorised bank or building society, under the Financial Services Compensation Scheme (FSCS).

If you’re looking at these figures and feeling behind for your age group, keep in mind that this is just a guide and everyone’s needs are different. If you have children or other dependents or you’ve taken a career break, it’s perfectly normal not to have as much saved as others your age.

It might be more helpful to work out how much you can realistically save right now, and then build a budget around that. Starting earlier may help your savings grow over time due to the benefits of compound interest, but consistent saving at any age can still make a difference. Growth also depends on the rate of your chosen product. 

*Office for National Statistics