New research commissioned by Hinckley & Rugby Building Society suggests people in their mid-20s to mid-40s are placing greater importance on building emergency savings amid continued financial uncertainty.
The survey of 2,000 UK adults, conducted by OnePoll, found that 45% of 25 to 44-year-olds are currently saving for an emergency fund, making it the most common savings priority for this age group. The findings suggest many adults are prioritising financial resilience, as they balance day-to-day living costs with longer-term responsibilities and the need to have a financial safety net in place. This comes as household budgets remain under pressure, with the wider survey finding that everyday living costs are the most common reason people feel they may not reach their savings goal this year. More than one in five UK adults (22.4%) cited high everyday costs, while 10.7% pointed to low income and 4.8% to housing costs such as rent or mortgage payments.
The data also highlights the challenges some face when it comes to saving consistently. Around 12% of 25 to 44-year-olds say they save occasionally when they can, rather than on a regular basis, while 20% say they have a savings goal but no clear plan in place to reach it. Across the wider survey, affordability also appears to be a key barrier, with 22.4% of UK adults saying everyday living costs are the main reason they may not reach their savings goal this year.
This points to a gap between intention, affordability and structure, with many appearing to want to save but facing pressure from everyday costs, or lacking a clear framework to do so consistently.
Danny Cranie, Chief Customer Officer from Hinckley & Rugby Building Society said: “For people who are finding it difficult to put money aside regularly, or who have good intentions but no clear plan, it can help to get back to basics. That means working out what’s left once essential costs are covered, and deciding, honestly where you are able and willing to make sacrifices. Separating out disposable income puts you in a much stronger position to start saving, even if it’s only a small amount.”
When it comes to the accounts they use, 50% of 25 to 44-year-olds use a Regular Savings Account, while 43% use Cash ISA accounts, showing that many in this age group are looking for more structured and tax-conscious ways to manage their money.
Danny also said “These findings show that for many people in their 20s, 30s and 40s, saving is closely tied to financial resilience. In a challenging economic climate, it is understandable that emergency funds are a priority, especially for those also managing debt and growing household costs.
For those looking to build a healthy savings habit, a regular savings account can be a useful option, as it encourages consistent monthly contributions and often offers a more rewarding interest rate, helping savings grow over time. Easy access accounts may offer less competitive interest rates, but they can play an important role when it comes to building an emergency fund, allowing people to access their money quickly and easily if unexpected costs arise. Simply keeping savings separate from day-to-day current accounts can also reduce the risk of funds being absorbed by everyday spending, helping ensure the money is there when it’s truly needed.”
For the full study, including a breakdown of how savings priorities differ across age groups, see here: https://www.hrbs.co.uk/savings-products/how-savings-goals-change-across-generations-in-the-uk/
