Three quarters (75%) of UK households have said they are prioritising contributions to savings, despite having less to spend during the cost of living crisis, Nottingham Building Society has found.

Research by the society, launched ahead of UK Savings Week, also found that 47% of UK households are saving up to 5% of their income, compared to 35% of the same households last year.

Although the number of people saving is substantial, many are not putting away as much as they had done previously.

The research also found that savings goals have shifted in the past 12 months, with the proportion of households saving for an overseas holiday decreasing from 37% in 2022 to 28%.

The number of households saving for a new car has also decreased by four percentage points in the same period.

However, 20% of UK households said they are now saving for retirement, representing a three percentage point increase compared to this time last year.

Chief savings officer at Nottingham Building Society, Bradley Nicholls, said: “Savings are crucial for building financial resilience and achieving life goals. This research shows that while people may be putting away less than they were last year and changing their savings goals to adapt to the volatile economic climate, the desire to save remains.

“These are challenging times as the cost of living continues to bite, and so the ability to consistently set aside savings is harder for many people. It’s reassuring though to see that saving still remains a priority for the majority.

“It’s important to remember the value and security that saving now can have in the long run and there are three things to remember. Firstly, think about putting away something regularly for the future even if it’s less than you were able to before. Secondly, look at the free resources that are out there to help you with financial planning. Finally, make sure you do your research and choose a savings account that works hard for you and your money.”

Share Story: