Where are you on your savings journey?

savings_journey

According to research we carried out in February 2018 with 2,000 UK adults, 47% wish they could save more money, yet 53% of their income goes straight towards living costs.

We all have different savings goals and as we go through life these can change. So where are you on your savings journey?

Young, carefree and ready to spend

School’s out and it’s time to go it alone. You might be fresh out of university, just starting a new job and have a proper income for the first time. Are you going to spend it or save it? Finding the right balance between enjoying life right now and saving for the future can be tricky.

You might not have much now, but saving a bit every month for things like Christmas or a holiday is a good habit to get into. Good savings habits now, mean you could benefit from the interest that builds up over time.

All set to settle

At this point you might be thinking about the big life events like buying your first home, getting married or even starting a family. All very exciting – all very expensive. Hopefully you’ll have a bit more money coming in, although it might feel like it’s going out just as quickly.

You could try a mixture of easy access and fixed term accounts – it’s all about finding the right balance. If you’ve got a goal in mind and already have some savings, a fixed rate account might be worth considering – they usually offer a higher rate than an easy access account, as long as you’re happy to lock your money away for a set time period.

Brits in our survey try to save an average of £171 a month

Somewhere in the middle, but not quite middle-aged

Retirement still seems a long way off but as time goes on it starts to seem more real. You might be thinking about extending the house, moving, remortgaging or even overpaying on your mortgage. You could also be wondering if you’re paying enough into your pension or if you should be saving more.

Our table below shows how much you’d need to save per month into a pension to achieve a certain target value. Starting to save sooner will make it easier to build a larger pension pot – but there are still options as you get older.

Monthly contributions for pension target value

Target value at 65 From age 30 From age 40 From age 50
£100,000 £89 £168 £375
£250,000 £221 £420 £936

Figures are for illustrative purposes only. We’ve assumed underlying investments will grow at an average of 5% a year, which isn’t guaranteed. If investment growth is less than this, you would need to save more to achieve this targeted level of income. We've also assumed a retirement age of 65. Contributions are gross.

Over 60% of respondents prefer to save in an ISA

Preparing for retirement

You’re dreaming of the days you don’t have to get up with an alarm. The mortgage might be coming to an end and if you have kids they might be more self-sufficient. Maybe you’re thinking about how to pay their university fees too. Hopefully, you’ll have a bit more disposable income and you’ll be looking forward to spending more time with your family and friends as well as having more time for yourself.

We know many of our customers are in this situation, which is why we offer financial advice. Retiring will involve a greater reliance on your pensions, savings and investments, so it can be a good idea to get financial advice to help you prepare and adapt to changes that lie ahead.

No work, new adventures, big changes

No more commute, no more nine-to-five and the mortgage is a distant memory. It’s your time to do more of the things you love. You might be thinking about your own health and support as you get older, or the future of your children and grandchildren and the legacy you’ll leave behind. It might also be time to start a completely new adventure.

Whatever your plans for retirement, you want your money to last as long as you do, so getting financial advice could help you have the financial flexibility you need.

62% of people we surveyed are regular savers

There’s never a bad time to save and we’ve helped generations of savers since 1853. It’s vital to plan for your future, so whatever stage of your adult life you’re at, time spent considering your financial options is time well spent.

The earlier you can start to save, the easier it is to make a positive impact over the long run and give yourself more flexibility in the future

William Gill, Senior Product Manager

Stock market-based investments are not like building society and savings accounts as your capital is at risk and you may get back less than you invested. The value of your investments and any income from them may fall as well as rise.

Wherever you are in your savings journey we’ve got time to talk.

Savings range

Whatever your plans, however much you can save each month, we could have an account for you.

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Savings personalities

In the 165 years we've been around, we've learned a lot about the way people think about saving.

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Either in Branch or via Video Appointment, a review is a great way to check your savings plans are on track.

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