As financial landscapes evolve and economic uncertainties loom, saving for the future has become a top priority for many UK adults.
A survey by financial advice platform NerdWallet UK has found that almost nine in ten adults have defined savings goals.
Amy Knight, a personal finance writer and spokesperson at NerdWallet UK, has stressed the importance of setting clear savings goals in today’s financial landscape.
Knight said: “In the face of economic uncertainties, it’s heartening to see consumers proactively saving for their financial well-being.”
Retirement ranks as the most popular savings goal, with more than half of respondents prioritising it.
This highlights a growing awareness of the need for long-term financial planning.
The survey, polling 2,000 UK adults, illuminated their savings habits and aspirations.
More than a third (38%) of respondents expect to achieve their primary savings goal within two years or less, demonstrating determination despite economic challenges.
Switching to higher-interest savings accounts is a popular strategy, pursued by 36% of adults in the past year.
Following retirement, building an emergency fund is the next most prevalent savings goal, cited by 41% of respondents.
The importance of an emergency fund is evident, with individuals estimating they could sustain their lifestyle for just over four months in case of job loss.
However, concerns persist, especially among older demographics, with one in ten 55-64 year olds expressing doubts about their financial resilience.
Despite varying confidence levels, certain age groups show a proactive approach.
Individuals aged 24 to 35 are notably confident, with 36% expecting to reach their goals within a year or less.
In terms of savings tactics, cutting down on non-essential expenses is the most popular, implemented by 42% of respondents in the past year.
Innovative methods like digital ’round up’ services gain traction, particularly among younger demographics, with 12% of respondents using this technique.
Entrepreneurship is a savings goal for 6% of UK savers.
London leads in this regard, with 17% of respondents from the capital saving for entrepreneurial endeavors.
The 18-24 age group emerges as the most proactive in saving for business ventures, reflecting a growing appetite for entrepreneurship among young Britons.
